The electrical goods retail chain Krëfel has announced that it is to close 5 of its stores with the loss of 180 jobs. Krëfel employs 1,100 people at stores across Belgium. The company says that the 5 stores that are to close are “structurally unprofitable”.
The first redundancies will take place during the 2nd quarter of this year. In a statement the company said that “Krëfel has informed the works’ council today of its intention to implement a plan that will give it fresh impetus and improve its competitiveness”.
Krëfel says that its financial situation has been precarious for several years “in a market where competition is fierce and margins are small.” Measures taken by Krëfel in the past to stimulate sales and keep costs under control have been insufficient to return the company to profitability. It says that without fundamental changes, the company's survival is under threat.
Once the company’s restructuring plan has been implemented it will still have 64 stores across the country.