Retail trade Restructuring at Tegut: Migros Zurich takes action

Migros Zurich is taking drastic measures at its German subsidiary Tegut to secure its future. These include the sale of stores, job cuts and a new management team.

Migros Zurich has decided to carry out extensive restructuring at its loss-making subsidiary Tegut in Germany. To ensure the company's financial stability, every tenth store will be sold and 120 full-time positions will be cut. In addition, the management will be replaced.

The decision follows inadequate sales and earnings development, as Migros Zurich announced on Thursday. The losses that Tegut has brought Migros Zurich for years are no secret. The aim of the measures is to secure the future of the company.

At the head office in Fulda, 120 jobs will be cut as costs have risen considerably in recent years. Migros Zurich emphasizes that the job cuts should be as socially responsible as possible.

In addition to the job cuts, Migros is also looking for a buyer for every tenth store. There will also be changes at management level: The previous managing director Thomas Gutberlet, who has headed Tegut since 2009, is leaving the company with immediate effect. The new management team consists of Sven Kispalko, Head of Restructuring, Karl-Christian Bay, Head of Finance, and Robert Schweininger, Chief Operating Officer.

"We are convinced that these drastic measures are necessary to secure the future of Tegut and to achieve robust results in the future", explained Patrik Pörtig, Managing Director of the Migros Cooperative Zurich, in a statement.

Tegut has been struggling with a lack of profitability for some time. According to Migros Zurich, the current market situation and the consideration of a possible expansion outside of Tegut's core area currently pose major challenges.

SDA