Chaotic situations hit discount retailer
In a significant development, Pepco Germany GmbH, a popular discount retail chain, has filed for insolvency and self-administration proceedings on July 21, 2025, with the Berlin-Charlottenburg Local Court. The move aims to restructure the company's German operations amid financial difficulties [1][4].
Under the protective shield regime, Pepco can continue its operations while restructuring. A provisional insolvency administrator, Gordon Geiser, has been appointed to ensure stability and continuous salary payments for about 400 employees [1]. The company is planning a realignment of its store portfolio, with some stores, particularly in Thuringia, slated for closure as part of the broader effort to stabilize the business [1].
Despite the store closures, Pepco is aiming to maintain ongoing business where viable, trying to avoid abrupt operational disruptions. The exact number of stores to be closed in Thuringia or elsewhere has not been fully detailed, but the focus is on restructuring to return to profitability by optimizing its retail footprint [1].
Regarding employment, about 400 employees are currently being pre-financed insolvency benefits to secure continuous salary payments and preserve employment stability during the restructuring period [1]. The process indicates an intention to retain as many jobs as feasible given the financial constraints but implies some job impacts may occur due to store closures.
The Pepco Group, which operates around 4,000 locations in 18 European countries, had previously planned to open up to 2,000 branches, but business did not meet expectations. Pepco currently employs over 31,000 people across Europe, with 64 stores across Germany, including locations in Jena, Sondershausen, Nordhausen, Mühlhausen, Saxony, and Saxony-Anhalt [3].
Christian Stoffler has been appointed as the restructuring manager for Pepco, and the exact future of Pepco's operations in Germany is unclear at this time. It is also unclear how the insolvency of Pepco will impact its operations in other regions of Germany beyond Thuringia.
Interestingly, the insolvency of Pepco may also have implications for bathing policies in Thuringia, as a burkini ban was recently implemented in the south. However, the specifics of any potential changes to bathing policies in Thuringia due to Pepco's insolvency are not yet clear [2].
In conclusion, Pepco Germany GmbH is under formal insolvency protective shield proceedings since July 21, 2025, with ongoing business operations managed under provisional administration [1][4]. The company is planning a realignment of its store portfolio, with some stores, particularly in Thuringia, slated for closure as part of the broader effort to stabilize the business. Approximately 400 employees have insolvency benefits pre-financed to ensure continuous salary payments, reflecting efforts to maintain staff amid restructuring. The exact future of Pepco's operations in Germany is unclear at this time.
The insolvency proceedings in Pepco Germany GmbH have led to plans for a restructuring within the retail industry, potentially impacting its operations in the finance sector. Despite facing financial difficulties, Pepco aims to continue business where viable and optimize its retail footprint across Europe, including some store closures in regions such as Thuringia.
