Type
Internal restructuring
Country
Germany
Region
Location of affected unit(s)
Kaiserslautern, Ludwigsburg, Hanau, Celle, Dortmund, Hamburg, Hannover, Kiel, Munich and Recklinghausen
Sector
Retail
Retail Trade, Except Of Motor Vehicles And Motorcycles
Retail Sale In Non-Specialised Stores
47.1 - Retail sale in non-specialised stores

1,177 jobs
Number of planned job losses
Job loss
Announcement Date
1 December 2009
Employment effect (start)
1 December 2009
Foreseen end date
31 March 2010

Description

On 1 December 2009, the insolvent retail chain Karstadt announced restructuring measures affecting almost 1,200 employees by 31 March 2010. The measures include both the closure of some stores and the internal restructuring of others.

Stores will be closed in Kaiserslautern (191 employees), Ludwigsburg (109) and Hanau (85 ). Also affected by the restructuring are locations in Celle (54), Dortmund (157), Hamburg (105), Hannover (147), Kiel (155), Munich (157) and Recklinghausen (17).

Negotiations with employee representatives to set up a social plan will start soon. The setting up of a transfer agency is considered as well as the reassignment of some employees to other stores. Karstadt is owned by the insolvent Arcandor group. The insolvency administrator stated that after the restructuring, a total of 120 stores will be left, which currently employ around 1,700 employees. For these stores the administrator seeks to set up an insolvency plan and is looking for investors.


Sources

Citation

Eurofound (2009), Karstadt, Internal restructuring in Germany, factsheet number 69972, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/69972.