Tegut restructuring case Migros Zurich sets German supermarket subsidiary a deadline until the end of 2026
Migros Zurich has set its German subsidiary Tegut a deadline until the end of 2026. If Tegut is in the black by then, "the company has a future at Migros - otherwise not", said Patrik Pörtig, head of the regional cooperative.
03.12.2024, 05:48
03.12.2024, 06:42
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- Migros Zurich has given its German subsidiary Tegut a deadline of the end of 2026.
- If Tegut is in the black by then, "the company has a future in Migros - otherwise not", said Patrik Pörtig, head of the regional cooperative.
- Next year there must be a "significant improvement".
Tegut still has one last chance, said the Managing Director of the Migros Cooperative Zurich in an interview with the "Neue Zürcher Zeitung" on Tuesday. There must be a "significant improvement" next year. The employees are also aware of the clear guidelines.
Migros Zurich's plan is to restructure the food retailer and make it profitable. "In order to have all the options again afterwards", said Pörtig. Migros Zurich had decided on this path after examining all options - including a separation.
Cost-cutting measures for restructuring
In mid-November, the regional cooperative announced the cost-cutting measures it was taking at its subsidiary: job cuts, the sale of stores and a change of management are intended to get the chronically loss-making supermarket chain back on track.
At the headquarters in Fulda, Germany, around a fifth of the workforce will be made redundant, said Pörtig. "We are currently looking for new operators for 35 stores," said the Managing Director of the largest Migros cooperative. Most recently, Tegut had around 340 stores and 7700 employees in Germany.