The insolvent home decor chain Depot is apparently planning significantly larger job and store cuts than previously known. Of the 155 stores with which the company entered self-administration proceedings in May, only around 50 locations are to remain open. In addition to its brick-and-mortar stores, Depot intends to continue focusing on online sales and shop-in-shop concepts.
In June, the company initially announced the closure of 66 stores. According to media reports, a further 39 branches are now to be closed. This would reduce the network by a total of 105 locations.
At the same time, around 330 employees were laid off on August 1st. This affects approximately 220 employees from the branches and 110 employees from headquarters and the field service. July salaries are still covered by insolvency benefits. However, the available funds are apparently insufficient for the period thereafter.
GDC Deutschland GmbH, which operates the brokerage branch business, filed for insolvency proceedings under self-administration at the Aschaffenburg District Court in May. At that time, the company employed around 1.200 people. This is the second insolvency within two years.
In the first insolvency proceedings in 2024, Depot closed around 250 stores and cut approximately 2.000 jobs. At the end of 2021, the group still operated around 500 branches in Germany and employed more than 6.000 people.
Among the reasons given for the renewed crisis by Managing Director Christian Gries were increased import tariffs, competition from Asian online platforms and the continued reluctance of consumers to buy.
