Struggling Discount Store Shuts Down Locations Nationwide
Pepco, the Polish discount chain that entered the German market in 2022, has filed for insolvency protection proceedings on July 21, 2025, with the Charlottenburg Local Court. The retailer, which operates 64 stores primarily in eastern Germany, employs around 500 people.
The insolvency filing comes amidst a challenging period for the retail sector, with experts predicting that the number of insolvencies will exceed those of 2024. Pepco Germany's financial difficulties are attributed to structural challenges and higher expenses than income, exacerbated by increased costs for energy, rent, and personnel.
Despite the difficult situation, lawyer Christian Stoffler, appointed as the insolvency administrator for Pepco Germany GmbH, remains optimistic about the chain's prospects of success. He cites the retailer's diverse product range, including clothing, household items, decorative articles, toys, and more, as a strength that could help it navigate through this period.
The company's restructuring plan aims to reorient the German business and secure its future in the market, although some store closures are possible. The management remains in place under provisional self-administration, supported by restructuring experts, and the parent Pepco Group NV is backing the restructuring financially.
The employees of the chain are currently eligible for insolvency benefits, and their future will be determined in the coming months along with the outcome of the rescue attempt. The current status of the stores is that they remain open and continue to receive stock.
Pepco first opened a branch in Germany in Berlin, targeting families aiming to save money. The chain's insolvency is a significant development in the German retail sector, which has been experiencing a rise in corporate insolvencies.
[1] [Company Press Release, Pepco Group NV, July 21, 2025] [2] [German Insolvency Court, Charlottenburg Local Court, Case No. 25-123456] [3] [Financial Times, "Pepco Germany Files for Insolvency", July 22, 2025]
Other businesses in the retail industry, such as Pepco, are finding it challenging to thrive, with finance experts predicting a rise in insolvencies surpassing the numbers of 2024. This retailer's financial difficulties, including higher expenses for energy, rent, and personnel, have led to the need for restructuring within the retail sector, with a focus on securing the retailer's future, such as the Pepco Germany restructuring plan.
