Pepco to close 28 stores in Germany

Following the insolvency filing of the discounter Pepco's German subsidiary in July, the restructuring plan for Pepco Germany GmbH was presented on Tuesday. The plan involves significant cuts to its store network.

Pepco Germany to close 28 stores

In recent weeks, the management has undertaken “an extensive analysis of the store network in Germany and the economic prospects of each individual store”, the company explained in a statement. Thirty-six of the previous 64 stores were “assessed as promising”.

The remaining 28 stores will now be closed “due to a lack of economic prospects by the end of January 2026, following the completion of the usual clearance sales”. The administration in Berlin will also be “streamlined”. According to the company, these decisions will affect around 165 of the approximately 500 Pepco employees in Germany. They will “receive termination notices shortly in accordance with insolvency regulations”.

Insolvency proceedings under self-administration opened on October 1

According to the statement, the self-administration proceedings for Pepco Germany GmbH were opened on October 1. “The implementation of the now completed restructuring plan, which the creditors' committee has already approved, will be carried out via an insolvency plan”, explained the retailer. The aim is to “create a solid basis for future profitable growth” through the cuts that have now been announced.

Restructuring managing director Christian Stoffler commented on the current situation. “The planned repositioning of Pepco in Germany is a key step towards sustainable profitability based on a leaner and more resilient operational foundation. This will enable us to achieve the main objective of the self-administration proceedings”, he explained in a statement. “My express thanks go to those landlords who are contributing to the success of the restructuring. I would also like to thank all employees who, despite the uncertainties of recent months, have stabilised business operations with great commitment and have continued to serve our customers in the stores as before.”

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