Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The Austrian drugstore chain Dayli has announced the closure of 180 of its 885 stores due to financial difficulties, making 560 employees redundant. Dayli, successor company of the insolvent Schlecker chain, which had started its business less than a year ago, said that 'unplanned losses' in the two-digit EUR million area have triggered delays in providing funds for the roll out and supply of goods to the network of stores. The losses are in part due to 'turbulences' regarding the opening of stores on Sundays, according the management. In addition to the closure of some 180 stores, a distribution centre with some 68 employees in Styria is to be shut down, as well. All 560 employees have been registered with the Public Employment Service's (AMS) early warning system.
Update 20 June 2013: The number of stores to be shut down has been reduced to 103. Consequently, 336 employees are going to be made redundant. Only the “smallest” stores are to be closed, according to the company's CEO Mr Haberleitner. A social plan has been negotiated, which has been strongly criticized by the trade union.
Update 4 July 2013: The company is bankrupt with excessive debts in the amount of EUR 49.5 million and is to file for insolvency. The former owner Mr Haberleitner has surrendered his ownership shares to the new owner Mr Zieger. Outstanding payments are to be taken over by the insolvency contingency fund.
Update 12 July 2013: 355 stores of the insolvent drugstore chain dayli are to be shut down, making 1261 employees redundant. The remaining 522 stores are to be kept open. By the end of July, a new investor worth at least EUR 40 million is to be found. If no investor is found by the end of July, the company is to be liquidated. Many works council meetings organised by the trade unions and the Chamber of Labour (AK) have been organised.
Update 14 July 2013: Dayli's competitors in the retail sector, dm, Rewe and Spar have announced to take over former dayli employees and have encouraged those standing to lose their jobs to apply.
Update 30 July 2013: The deadline to find a new investor has been extended to mid-August. The remaining 2,200 employees have been registered with the Public Employment Service's early warning system. Thus, all 3,468 jobs are threatened.
Update 12 August 2013: As no investor could be found, it was announced that Dayli is closed down definitively. It is the largest insolvency case in the commerce sector in Austria with regards to the number of employees within the last 20 years.
Eurofound (2013), Dayli, Bankruptcy in Austria, factsheet number 75463, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/75463.
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