Discounter Kodi Files for Insolvency Again – Around 50 Stores Facing Closure

Kodi is not in financial difficulties for the first time. As early as 2024, the company had gone through a protective shield procedure and shed a large part of its store network. Of the original roughly 240 locations, only 150 remained afterward. In the course of that restructuring, more than 500 employees received notice of termination. According to its own figures, the company currently employs around 1,200 people. The majority of the remaining stores are located in North Rhine-Westphalia.

Reasons for the Renewed Crisis

As reasons for the renewed step, management cites the persistently difficult situation in German retail, weak consumer sentiment, increasing competitive pressure from digital business models, high energy costs, rising non-wage labor costs, and high rent burdens. Industry observers see this as another warning sign for the crisis facing brick-and-mortar non-food discounters.

In self-administration, the existing management remains in office and carries out the restructuring itself, while the custodian monitors the interests of the creditors. Kodi had already used this model in 2024. Store closures are expected to be accompanied by further job cuts. According to the company, it has not yet been determined which locations are precisely affected.

Self-Administration and Insolvency Benefits

Specifically, management expects that around one-third of the currently 150 stores will have to close. That would be around 50 locations. Until a final decision is made, business operations in the stores are to continue without restrictions. Customers can therefore continue to use the stores as usual for the time being.

According to the company, salaries and wages for July, August, and September are secured through insolvency benefits. This means the statutory insolvency default compensation applies, which replaces failed salary payments for up to three months. For employees, this means that their wages during this period will be paid out via the Federal Employment Agency.

Mäc Geiz Also Under Pressure

Kodi's crisis comes at a time when other non-food discounters are also under pressure. As recently as February of this year, Kodi's parent company had taken over the also-struggling competitor Mäc Geiz. Stores are under review there as well. According to company information, Mäc Geiz operates around 180 stores and is primarily present in eastern Germany.

Founded in 1981, the company Kodi has been active in German retail for decades and primarily sells household goods and drugstore items. With the renewed insolvency filing, the course of contraction continues. The final decision on the extent of store closures and the restructuring strategy is expected in the coming weeks.

The news of the renewed insolvency was broadcast on 14 July 2026 on the Deutschlandfunk program. The outcome of the proceedings is considered open. Observers expect that the coming weeks will show whether an investor can be found or whether a larger portion of the stores will have to close permanently.

Industry experts see the renewed step at Kodi as evidence of the structural problems in brick-and-mortar non-food retail. The combination of online competition, rising costs, and subdued consumer sentiment is putting pressure especially on smaller store operators without a strong online presence. Whether the self-administration procedure can lead to a sustainable restructuring this time remains to be seen.

The situation is also precarious for employees. After the layoffs during the first restructuring in 2024, further job losses now threaten. The works council and unions have not been publicly involved in the process so far, but observers expect negotiations over a social plan as soon as concrete closure plans are available.