About 12.000 jobs endangered due to bankruptcy of the German drugstore chain “Schlecker”

The history of the German drugstore chain “Schlecker” already began in 1965.The concept of these drugstores develop slowly by changing the family owned butcher shops  to the nowadays existing shops. In 1975 the first drugstore was opened. After that an incredible expansion of this concept took place. Already two years later 100 of these shops exists and in 1984 already 1000 of them where founded.  This expansion went on until more than 8000 of these shops exist already in the end of the 90th with nationwide more than 35000 employees. And the expansion got international. Schlecker expanded to Austria, France, Spain, the Netherlands, Portugal, Poland and Italy.

However, despite of this fast development Schlecker regularly came under criticism because of bad working conditions and low wages.

This situation in combination with a slow reaction to upcoming trends as well as big competition due to Rossmann and DM leads to high customer losses for the drugstore chain. In conclusion, Schlecker announced its insolvency in January 2012, as well as for its sub-company “Ihr Platz”, also a drugstore chain.

In March 2012 more than 2000 Schlecker shops have been closed and nearly 12.000 employees out of the actual employed 33.000 workers worry now for their jobs. These employees should be helped due to a transitional company, where they would get a contract for one year including a salary about just 60% of their previous wage. In this year, the employees should be further educated and the transitional company should help them to find a new job due to several measures. However the sourcing of this transitional company is still uncertain. The liquidator asks for a public sourcing of this transitional company which should bear the arising costs of more than 70 million euro.

http://www.fr-online.de/wirtschaft/insolvenz-schlecker–der-gefallene-riese,1472780,11486706.html

http://www.fr-online.de/schlecker-insolvenz/schlecker-insolvenz-schlecker-reagierte-zu-spaet-auf-trends,11541316,11485040.html

http://www.zeit.de/wirtschaft/unternehmen/2012-03/schlecker-kuendigungen

http://www.spiegel.de/wirtschaft/unternehmen/0,1518,823551,00.html

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4 thoughts on “About 12.000 jobs endangered due to bankruptcy of the German drugstore chain “Schlecker”

  1. This is a really bad situation for Schlecker and especially for thousands of its employees. Now they are supported by the regulation paying 60% of their previous wage, but it is not a long term solution. Concerning the public sourcing there are two points of view. On the one hand it is obvious that the government should support the company and its employees, on the other hand the paying population have again to bear the burden for someones mistakes.

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  2. There are two very interesting facts about the story of Schlecker. First the business was run as a registered merchant, which is the form of business with the most risks for the owner and usually only used by small businesses. It is hard to understand why they have never changed the form of organization. And second the closing can have a very bad impact on the German labor market, because most employees are low or not skilled women in their 50s. For them it will be hard to find a job again even though they got temporary help from a transition company.

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  3. This is a really sad case. Thousands of people have lost their jobs and they now have difficulties in finding something new. For me, it is not understandable why the government is not supporting this company just because of one part of Germany saying no. I understand that they do not want to burden the public but on the other side, the German government is willing to use the publics money (also of those who worked for Schlecker) for supporting other European countries while the majority of the German population is against the high amounts of the money given. At the other side, the government does not support companies which have a long history in Germany and offer nationwide thousands of jobs. It is important to help the European countries but than the government must also support the companies of the own country. At the other hand, there is also the case that the management of Schlecker failed completely. Due to their form of organization, the owner has lost everything and therefore the employees have no change. Changing the form earlyer, could have changed the situation a bit.

    Due to the decicions of the management and the government it is again the small employee who has to suffer most.

    Reply

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