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Schlecker to remain in Luxembourg
Economics

Schlecker to remain in Luxembourg

14.03.2012 From our online archive
Owners of a German drugstore, which has begun insolvency proceedings stated there will be no layoffs or store closures for its Luxembourg outlets.

Owners of a German drugstore, which has begun insolvency proceedings stated there will be no layoffs or store closures for its Luxembourg outlets.

Schlecker announced the insolvency proceedings for its 10,000 German-based stores last week but today reassured the 120 employees in its 28 Luxembourg stores that their jobs were not at risk.

In a statement released by the board of directors, it said: “The overseas operations of Schlecker operate independently and are cost effective. Luxembourg, therefore, is not affected by measures being taken in Germany."

The statement added that suppliers will continue to guarantee the supply of goods to Schlecker stores in Luxembourg.

"Luxembourg will continue activities independently and will not be affected by the German procedure,” the statement added.

Schlecker Germany began a major restructure mid-2010 but it appears the steps came too late.

Schlecker said: "The restructuring measures necessary for German-based Schlecker stores could not be implemented on time, especially since the proposed interim funding could be reached. The continuation of this restructuring must now be done in the context of insolvency proceedings. "

Luxembourg-based workers' union the LCGB took the announcement with a pinch of salt, remaining sceptical about the future of Schlecker in Luxembourg.

The union said in a statement: “Schlecker has 17,000 stores in total, including 10,000 in Germany. If all stores close in Germany, it would be surprising if there is no impact in Luxembourg.”

LCGB plans to meet Schlecker management on Friday to clarify matters.