Liner and Kika aren't out of the woods yet

228.64 million euros accumulated losses

The chain has suffered huge losses under Signa's leadership in recent years. In the 2021/22 financial year, sales amounted to approximately €595 million, annual loss amounted to €83.71 million, and balance sheet loss amounted to €228.64 million. At the beginning of 2023, sales fell by up to 20 percent.

In mid-June 2023, the restructuring process was opened under the leadership of the new owner Wieser and ended on September 25 with the restructuring plan (20 percent stake). Of the 40 locations, 23 have closed, and the rest will continue to operate with approximately 1,900 employees. The shrinking company aims to achieve annual sales of €400 million and the end result is a black zero.

Since November 2023, new lease agreements have also been concluded which include a sales component and an eight-year lease period. “In addition, an Owner Support Agreement has been entered into, which is a one-time, non-repayable agreement that is spread over the term.” As reported, the support provided by the owner of Supernova amounts to approximately 30 million euros.

hard times

“December and January were satisfactory, but economic conditions remain difficult,” Michael Salamanig, spokesperson for Liner & Kika, tells KURIER. “This is affecting the entire trade. It is expected to remain that way for the next few months.” Adding: “Everything will be done to achieve the goals we have set.”

“In the current financial year, there are restructuring gains worth €117 million on the books,” the management report continues. This profit arises because creditors waive 80% of their claims. These are mainly suppliers, the Insolvency Compensation Fund and the Tax Office. The latter was forced to write off the majority of deferred taxes and fees. “The rollover profit is only realized for tax purposes when the share is paid,” and the last installment is due at the end of September 2025.

Insecurity

“If the profit and liquidity targets set out in the restructuring plan are not achieved, there will be significant uncertainty regarding the continued existence of the company,” the management report says. “If the company is unable to obtain further financing, it may not be able to realize its assets and repay its debts in the ordinary course of its business.”

Commercial Registry Court
Previous owner Signa merged Kika and Leiner so he could preserve their balance sheets. Buyer Hermann Wieser has now prepared and submitted the balance sheets for 2021/22 and 2022/23. In the financial year 2021/22, sales amounted to approximately 595 million euros, the annual loss was 83.71 million euros and a balance sheet loss of 228.64 million euros.

Latest balance sheet
In the fiscal year 2022/23, sales amounted to 597 million euros, the annual profit was 84.33 million, and the accumulated loss was 144.31 million euros.