German home decor chain Depot to close 70 stores amid financial crisis

German home decor chain Depot is facing a severe crisis, with plans to close 70 of its 155 stores nationwide. The company, which previously declared bankruptcy in 2024, is again undergoing insolvency proceedings. Of the 70 stores slated for closure, 61 will shut down soon, while nine have already ceased operations in cities including Munich, Berlin, Hamburg, and Frankfurt.

Some affected stores are already holding sales, though it's unconfirmed if all closing locations are participating. The situation could worsen, as reports suggest the number of closures might exceed the current 70. Depot also plans to move its headquarters from Großostheim, a move expected to result in additional job losses.

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The chain needs about 150 stores for the business model to be sustainable.

Depot is trying to rescue its business by concentrating on profitable locations. However, an anonymous insider expressed skepticism about this strategy, suggesting the chain needs around 150 stores to be sustainable. In contrast, CEO Christian Gries believes Depot can remain profitable with 80 or fewer stores.

The company, Gries Deco Company, has struggled financially for years. Inflation-driven consumer spending declines and rising costs for rent and logistics have further burdened its operations. The current insolvency, managed internally, is a new attempt to restructure and save the chain.

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Depot can profitably operate with 80 or fewer stores.