Depot closes 66 stores: Insolvency and job cuts 2026

Background: Insolvency in self-administration

The closures are part of an ongoing insolvency proceeding in self-administration, which the parent company GDC Deutschland GmbH had initiated at the Aschaffenburg district court in May of this year. Depot, headquartered in Großostheim in Lower Franconia, has a broad presence in Germany, but has been struggling with a significantly reduced store network of just over 150 stores since its first insolvency in 2024.

As reasons for the renewed crisis, Christian Gries cited several factors in conversation with the Deutsche Presse-Agentur: increased tariffs, growing online competition from platforms such as Temu, and a pronounced reluctance of customers to spend. "Es ist eine schwierige Zeit für den Handel. Viele Kunden schauen stark auf die Preise," said Gries. He also pointed to the economic necessity of the closures: "Es geht wirtschaftlich leider nicht anders. Wir können nur Läden betreiben, die rentabel sind."

Reasons for the crisis

Around 330 employees will lose their jobs according to Gries. Further job cuts are to be expected at the company headquarters in Großostheim. The CEO did not provide figures on the total number of remaining employees. This continues the downward trend from 2024, when numerous employees had already lost their jobs during the restructuring at that time.

Situation in German retail

The closures are taking place in an overall tense environment for German retail. According to the Ifo Institute, every sixth retailer in Germany now fears for their existence. In April, 17.4 percent of surveyed retailers had assessed their situation as existentially threatening – a record high. Other chains are also under pressure: The home textile chain Hammer closed its last stores in May, the hardware store chain Hellweg and the non-food discounter Mäc Geiz had also recently filed for insolvency.

Further closures not ruled out

According to Christian Gries, the location closures are not yet definitively completed. Further stores could follow, because negotiations with landlords about rental conditions are still ongoing. Ongoing costs and weak consumer sentiment continue to weigh on the company. The restructuring in self-administration is intended to give the company breathing room to concentrate operations on profitable locations.

For the employees whose locations are on the list, the decision means clearance sales in the short term and an orderly wind-down by the end of July. Many of them had already been under pressure after the first insolvency in 2024 and had experienced pay cuts or uncertainty. A complete tally of the employment impact at the headquarters in Großostheim and in the remaining stores is still pending.

Outlook on structural change

Observers see the Depot crisis as further evidence of structural change in bricks-and-mortar retail. Low-cost platforms on the internet, increased energy and logistics costs, as well as changed shopping behavior after the coronavirus pandemic have put the industry as a whole under pressure. The Ifo Institute interprets the sentiment data as a warning signal for the entire sector.

Overall, it is becoming apparent that the German retail landscape continues to lose diversity. While major online platforms grow, medium-sized chains such as Depot are increasingly coming under pressure. The coming weeks will show whether the ongoing negotiations with landlords and creditors can still save additional locations or whether the network will continue to shrink.