Austria: Schoenherr supports KIKA/Leiner on sale to SIGNA

The Schoenherr insolvency & restructuring team was led by partners Wolfgang Höller and Miriam Simsa.

The restructuring plan, which was agreed upon with the KIKA/Leiner management and employees, had been on track until recently despite extremely difficult conditions. However, at the end of May 2018, due to adverse circumstances involving the withdrawal of credit insurance cover the restructuring plan was at risk. By reacting swiftly to the new situation, the team succeeded in buying time, in order to enable the sale of the KIKA/Leiner Group to a new owner.

"For the management and the employees, it was extremely challenging to remain calm in such a dire situation. We were operating in a tight legal framework to ensure the future of a whole company. In that situation, our role as advisers came into sharp focus," explains Wolfgang Höller. "In the end, despite the large number of involved parties, it was possible to bring the negotiations to a successful end. We still have a lot of work ahead of us, but owing to the professionalism of the new owner and his team, things will surely run more smoothly."

KIKA/Leiner is one of Austria's largest furniture retail groups and is also present in CEE. The company became part of the Steinhoff International in 2013, and was acquired by SIGNA Retail Holding GmbH on 21 June 2018. Schoenherr also supported KIKA/Leiner in the first step of the restructuring process, at the beginning of 2018.

The Schoenherr team advising KIKA/Leiner consisted of Wolfgang Höller (partner, insolvency & restructuring) and Miriam Simsa (partner, insolvency & restructuring), who were supported by Philipp Kalser (associate, insolvency & restructuring). Dr. Ulla Reisch also served as legal advisor to KIKA/Leiner.