GDANSK (Reuters) -Pepco Group’s German unit has filed for insolvency proceedings as it seeks to revamp its loss-making store network in the country.
Pepco Germany filed for the proceedings at a Berlin court. The unit operates 64 stores and employs around 500 people. All stores will remain open until further notice.
The company has appointed Christian Stoffler as Chief Restructuring Officer to oversee the process.
“We see good opportunities to realign the store network in Germany so that it can prosper, despite the challenging German retail market,” Stoffler said in a statement.
Pepco said its German network had experienced challenges since entering the market in 2022 and is currently making a loss.
The variety discount retailer’s parent company has pledged its support for the restructuring process and to provide financing.
(Reporting by Julia Kotowska; Editing by Matt Scuffham)
