DIY Week.net
Essential reading for retailers and suppliers in the home improvement market
DIY Week Awards 2015
Still time to enter...


News

Published on 29 - July - 2013
 
Now Max Bahr goes down after insurers pull the plug
Germany's Max Bahr DIY chain has filed for insolvency, dashing hopes that it might be able to survive the collapse two weeks ago of parent Praktiker, the country's third-largest home improvement retailer.

It had been hoped that Max Bahr could avoid the fate of parent Praktiker
It had been hoped that Max Bahr could avoid the fate of parent Praktiker

At the time, Praktiker said Max Bahr would not be affected by its own bankruptcy proceedings or those of sister retailer Extra Bau + Hobby. However, the move sent jitters through Max Bahr's suppliers' credit insurers, which have now pulled out of their contracts. The lack of insurance meant that a "steady supply of goods to Max Bahr stores is no longer guaranteed," Praktiker said.

Praktiker's international businesses are unaffected by the proceedings.

Max Bahr, which trades from 132 stores and has 3,700 employees in Germany - over 5,000 in total - was bought by Praktiker in 2007. While Praktiker itself has been persistently loss-making, Max Bahr had been seen as a more secure business - and likely to benefit in the future from the failure of its parent.

Now, the slack is certain to be picked up by rivals such as Hornbach, Germany's leading DIY retailer, and in which B&Q owner Kingfisher has a 21% stake.

Praktiker's insolvency is reportedly the biggest in German retail since the bankruptcy of drugstore chain Schlecker in January 2012.



Comment Leave a comment Email Send to a friend   Print Printable version   Print Link to this story

Make a comment?
Your name
Subject

Inform me of responses to this comment

This Is CAPTCHA Image
Enter number above (anti-spam)



DIYWeek.net does not edit comments which are submitted directly by our users to express their own views. Please report abuse of our comment system here.




© Datateam Business Media Limited 2013. DIY Week.net news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.


Click here to receive the diyweek.net weekly newsletter


Datateam Business Media Limited
15A London Road, Maidstone, Kent ME16 8LY. United Kingdom
T: +44 (0)1622 687031
F: +44 (0)1622 687031

Cookies
We use cookies to make this site as useful as possible. They are small text files we put in your browser to track and assist usage of our site but, with the exception of cookies that help you log in, they don't tell us who you are.
You can control cookies in your browser settings. If you use our site it implies that you consent to our cookie usage. To find out more about how we use cookies and how you can control them, click here to see our cookie policy.