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RWV4 - German drugstore Schlecker closes branches In January 2012, German drugstore chain Schlecker filed for the protection under German bankruptcy laws and an administrator
RWV4 - German drugstore Schlecker closes branches
In January 2012, German drugstore chain Schlecker filed for the protection under German bankruptcy laws and an administrator was appointed. At that time it was hoped that the jobs of nearly 50 000 workers in about 10 000 stores across Europe would be safe. The news was not surprising, as the company has closed over 1000 stores in the previous two years as revenues declined. The decline in revenues may have been due to reported cases of being harsh on staff, which permeated the German media during the same time period.
By the end of February 2012, the administrators had a clearer picture of the financial state of the Schlecker chain. About 3000 stores were to close with the loss of 13 000 jobs. The administrator is quoted as stating that such closures and job losses were necessary for a sustainable continuation of the chain. By mid-March 2012, most staff had been informed and the final number of store closures was approximately 2000, with 12 000 staff affected. All shops which were to be closed immediately started a sale with 30% off all products. In addition to the store closures eight distribution centres were confirmed as definite closures. Since the closures, the company has re-focused itself on the remaining stores, as well as launching a new corporate look and logo.
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1. How might the administrator of Schlecker decide which stores to close?
2. Why offer a 30% off sale on products in the stores to be closed down?
Important Note : I post this question and I know that it's already been solved. I want unique and new answer please does not copy then paste the same old answer that's already solved in Chegg.
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