Tegut fights for survival: 120 places disappeared, branches on sale!

Tegut fights for survival: 120 places disappeared, branches on sale!

Tegut, a well -known food company based in Fulda, is in crisis. The Swiss parent company Migros announced comprehensive renovation measures at the end of November 2024, which are now showing the first noticeable consequences. Due to inadequate sales and profitability development, Tegut is forced to reduce 120 full-time positions and sell over 30 branches. These measures are part of a larger renovation program that aims to stop a negative trend that has lasted for years and to secure the future of the company, such as Fuldaer Zeitung reported.

The first layoffs have already taken place in Fulda. Thomas Gutberlet, the long -time managing director of Tegut, left the company immediately after the announcement of the renovation measures. In the new management, Sven Kispalko as head of restructuring, Karl-Christian Bay as head of finance and Robert Schweininger are now responsible as an operational boss. However, there is unclear about the specific locations that will be affected by the branch sales, although it would be estimated that around 30 to 35 locations could be identified.

socially acceptable personnel reduction

The job cuts will primarily affect central services at the Fulda headquarters and the logistics jobs in the new logistics center in Michelsrombach. Migros emphasizes that the measures should be implemented in a socially acceptable manner. This includes offers for mutually acceptable termination of the employment relationship for affected employees. The works council was involved in the talks and expressed concerns about a growing tendency to terminate their own. The works council hopes that this trend will not continue because this could further tighten the situation.

Tegut is currently talking to possible buyers in order to hand over the affected locations to new operators. The aim is to continue the existing teams on the branches, which is of great importance in view of the upcoming changes. In total, Tegut operates around 350 branches in Germany, a number that was influenced by the recent takeover, such as those of the Bio-Supermarket chain Basic with its 19 locations.

The challenge of profitability

The renovation measures are an answer to the financial difficulties with which Tegut fought. According to Hessenschau , the company has increasingly lost in recent years and the sales remained behind the expectations. In 2023, Tegut implemented 1.28 billion euros in 345 sales outlets, an increase of 2.4 percent compared to the previous year, but without providing profit. The renovation measures also include the deletion of around 1,500 jobs in the entire group, which focuses on the four core areas of food, non-food, health and Migros Bank.

The Verdi union regretted that these decisions inevitably lead to a loss of jobs and hopes to receive as many places as possible. These developments raise questions about the long-term future of Tegut, which has been part of Migros Zurich since 2012 and has a high organic share in its range. The coming weeks and months will have to show whether the renovation steps they have taken are sufficient to bring the company back onto the growth path or whether further measures will be necessary, as well as watson.ch notes.