Overview

• The Higher Regional Court in Dresden approved an €800,000 settlement to resolve the insolvency administrator’s claims against the Schlecker family.
• In the original lawsuit the administrator sought €1.3 million, accusing the family of siphoning funds via a loan agreement with temporary staffing firm Meniar.
• Schlecker filed for bankruptcy in 2012 despite insolvency beginning in 2009, a collapse that left thousands of predominantly female employees jobless.
• Observers pinpoint the chain’s outdated store concept and reliance on low-cost labor as key factors in its downfall.
• The resolution concludes long-running litigation that helped drive Germany’s “Lex Schlecker” legislation aimed at preventing similar misuse of temp agencies.