EMCC European Monitoring Centre on Change

Neckermann

Company/Organisation:
Neckermann

Geographic Location

Country: Austria
Region: Graz; Steiermark; Südösterreich
Location of affected unit(s): Graz

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.91 - Retail sale via mail order houses or via Internet
Number Employed: 280
Group: Neckermann group

Employment Effects

Announcement Date: 04-12-2012
Planned Job Reductions min: 120
Type of Restructuring: Merger/Acquisition
Employment Effect Start: 04-12-2012
Foreseen End Date: 24-12-2012
Direct Dismissals: 120

Additional Information

The financially troubled mail-order company Neckermann Versand Österreich (NVÖ) was rescued from bankruptcy; however, some 120 employees stand to lose their jobs.

The company, a subsidiary of the German Neckermann Group, underwent restructuring in 2011 (see here) and was in a deep financial crisis. Due to an agreement between the liquidator, the suppliers and creditors and the financial investment of the German investor TopAgers, the company could be rescued from bankruptcy.

However, some 120 of the remaining 280 employees will lose their jobs. The current company will close down by Christmas and the business will be taken over by a new subsidiary of NVÖ. The financial officer of the company has announced that the workforce might be increased again in a few months' time and laid-off workers could be asked to come back if business is going well.

The union, Public Employment Service and the provincial government are working on an insolvency work foundation for the laid-off employees.