Kodi Files for Protective Shield Insolvency to Address Financial Struggles

The German discount retailer with 1,800 employees plans restructuring to combat declining sales and rising costs while keeping operations running.

Kodi, a household goods discount retailer based in Oberhausen, Germany, has initiated a protective shield insolvency procedure to facilitate restructuring efforts.
The company operates 238 stores nationwide and employs approximately 1,800 people, with wages and operations continuing uninterrupted for now.
Kodi attributes its financial difficulties to a sharp decline in consumer spending, increased competition, and rising costs in areas such as energy, freight, and advertising.
A restructuring plan is being developed and is expected to be presented to the court and creditors by spring 2025, with approval potentially ending the insolvency process.
The company has enlisted restructuring experts to support its existing leadership in implementing measures aimed at returning to profitability.