Fresh start with 36 stores: Pepco Germany ends insolvency proceedings

Last summer, the German subsidiary of retailer Pepco NV filed for insolvency. Following a comprehensive restructuring that included significant cuts to its store network, the discounter is now set for a fresh start in the country.

The self-administered insolvency proceedings for Pepco Germany GmbH, which began on October 1, will end on February 28, the company announced on Monday. The creditors' meeting had already unanimously approved the proposed insolvency plan on January 14. This plan has since been legally confirmed by the responsible District Court of Berlin-Charlottenburg.

Discounter has significantly reduced its German store network

In the future, the retail chain will have a significantly smaller presence in Germany. It was decided in October to reduce the number of stores from 64 to 36 by the end of January as part of the restructuring plan. According to the company, this reduced the number of employees in Germany from 500 to approximately 350. The retailer stated that the aim of these measures is to “create a solid basis for future profitable growth”.

According to a statement, Pepco Germany GmbH will be managed by Daniel Blaumann, who “will continue to be responsible for operations in Germany”. He will be joined by Jorge Gervasi, chief operating officer for Western Europe, and Ľubica Poláková, head of finance.

Restructuring manager Stoffler sees a profitable and promising basis for Pepco in Germany

Christian Stoffler, who served as restructuring manager during the proceedings, will now step down from his post. In a statement, he drew a positive conclusion from the past few months. “Pepco Germany is a prime example of a rapid and effective self-administered restructuring. In just six months, the store business in Germany has been placed on a profitable and promising basis,” explained Stoffler. He added that Pepco now has “all the prerequisites to make a successful fresh start in Germany”.

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