Kodi files for insolvency once again and plans to close 50 stores

CEO apologizes to employees

Grund asked employees for their understanding. "We deeply regret having to present them with this outlook," the CEO said. At the same time, he appealed for confidence in the course being pursued: "However, the starting position is not an easy one — we have to say that quite openly," Grund added.

Back in 2024, Kodi had applied for protective shield proceedings and worked toward a restructuring. At that time, the number of stores was reduced from 240 to 150 and the company was temporarily stabilized. Now, however, the measures taken so far are no longer sufficient to sustain the chain in the long term, according to management's assessment.

Pressure in non-food retail

As a non-food discounter, Kodi primarily sells household goods, drugstore items, and electronics accessories at low prices. The business model has been under pressure for years: competition from online retailers, rising costs, and consumer reluctance to spend are weighing on the company.

The renewed insolvency filing became known on Tuesday. In Germany, such an application is a prerequisite for a court to open restructuring or insolvency proceedings, thereby clearing the way for an orderly restructuring. Creditors and potential investors are to be approached during the ongoing proceedings.

What employees now face

How many jobs will actually be lost as a result of the planned 50 store closures remains unclear at present. Management pointed to ongoing discussions with employees and works councils, as well as to a social plan that still needs to be negotiated.

If the restructuring proceedings fail, the company faces final break-up according to the information available. Even now, industry insiders say, finding a buyer or investor for the remaining locations is one of the biggest challenges in the coming weeks.