Mein Real Shutdown Criticized by Verdi Union
Verdi, a trade union, has chastised SCP, the chain's owner, for the announcement of Mein Real's closing of 45 stores. As reported by the German Press Agency, Verdi's state secretary for retail in North Rhine-Westphalia, Heino Georg Kaßler, stated on Tuesday that the investor SCP is evading responsibility while taxpayers bear the brunt of insolvency payments.
Mein Real currently operates under self-administration while in bankruptcy. Employees with long-term service get a maximum of two and a half months' pay due to the regulation's caps on severance pay during insolvency. This closure affects around 3,500 individuals, including both store employees and head office staff.
Real GmbH announced on Monday their plans to sell 18 of their 63 stores to Rewe, Kaufland, and Edeka. The remaining 45 stores will close by March 31, 2024, after their unsuccessful search for a buyer. Operations at the affected stores will continue normally until March 2024.
At the end of September, the company had more than 5,000 employees between stores and the head office in Mönchengladbach. Following the transfer of the 18 stores, around 1,500 employees were offered long-term employment opportunities.
Despite this, Kaßler criticized SCP, claiming that they don't perceive themselves as a strategic retail company but only as a liquidator. This viewpoint came after SCP's acquisition of Real from Metro in 2020, at which time SCP's main interest was in the property.
SCP purchased the Real chain with 276 stores from the Metro retail group in 2020, aiming to break it up and sell it off. Key retailers like Kaufland, Edeka, Globus, and Rewe secured numerous attractive stores. Post the interim sale, SCP once again acquired ownership in May.
Verdi's criticism stems from SCP's view of Mein Real as a liquidation project rather than a retail company strategy, leading to the closure of the 45 locations amidst insolvency, with taxpayers footing the bill.
Although the enrichment data does not provide direct insights into this specific situation, it can be inferred that trade unions like Verdi often criticize companies for store closures, as it can lead to job losses, economic instability, and potential unfair treatment of employees in the affected communities. On the other hand, companies like SCP might perceive store closures as strategic business decisions aimed at optimizing their retail network and focusing on opportunities with a higher potential for profit.
