The furniture chain kikaLeiner is set to complete their remediation procedures by the fall of 2023, according to Volker Hornsteiner, the manager of the company. Despite high inflation, stricter home loan guidelines, and a construction recession, kikaLeiner is hopeful that demand will pick up with the introduction of their new discount own brand, OHO!, in April.
One of the main aspects of kikaLeiner’s new down payment protection is to build customer trust when making larger purchases, such as kitchens. The customer’s funds go into an escrow account and are only released to the company after the goods have been delivered. This measure aims to reduce any potential risks associated with large purchases.
In recent years, kikaLeiner has undergone significant changes in ownership and branch closures. After being acquired by the Signa Group in June 2023, the furniture chain went through a restructuring process and filed for bankruptcy. However, new owner Hermann Wieser has expressed a long-term investment in the furniture chain and secured equity capital for the next few years.
Despite these challenges, kikaLeiner is optimistic about their future prospects and continues to work towards stabilizing the organization and achieving financial stability. In fact, they expect sales in the range of 300 to 400 million euros for 2023/24 with a halved branch network. The focus now is on customer needs as essential decisions have been made to reduce the number of branches, streamline the range, and strengthen the company’s own brands. Furniture brands such as Team 7 and ADA, as well as kitchen brands such as DAN and EWE, will still be part of the range.