German interior decoration retailer Depot is closing at least one-third of its stores in Germany, owner Christian Gries told dpa on Monday.
Some 45 locations have shuttered across the country since January, with 54 more to close their doors in April and May.
Around 2,000 of the company’s 3,300 employees are expected to lose their jobs due to the closures this year, after 43 stores were shut last year.
Gries said it was not possible for the company to keep operating as usual.
“We can get our business back on track for success – by optimizing costs in a targeted manner and giving Depot new momentum,” he argued. “That is the only chance of survival.”
Depot, based in Niedernberg outside Frankfurt, had more than 400 shops in Germany at its peak but has struggled with the aftermath of the coronavirus crisis and filed for insolvency in July 2024.
The chain is under pressure due to stagnant consumer spending amid a wider economic downturn, and also faces competition from online marketplace Temu and other discounters.
“Cheaper alternatives in retail and online have outstripped us,” said Gries. “We need to track down trends faster and bring them into the shops.”
The company must also focus more on e-commerce, he argued. “Many products should be available online earlier and sent directly from Asia to the customer.”
Depot, previously a subsidiary of the Gries Deco Company, is to be transferred to a newly founded company, GDC Deutschland.
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