P&G resumes deliveries to insolvent Schlecker

Fri Jan 27, 2012 10:32am EST

* Schlecker assumes all suppliers to restart deliveries soon

* Insolvency administrator in talks with suppliers

* Rossmann founder says Schlecker landlords want out

FRANKFURT, Jan 27 (Reuters) - Procter & Gamble has resumed deliveries to Schlecker, which will help restock shelves five days after Germany's biggest drugstore chain filed for insolvency.

"Schlecker assumes that the remaining business and industry partners will resume normal cooperation again shortly," the company said in a statement on Friday.

Schlecker is seeking protection from its creditors, putting about 30,000 jobs at risk, as struggling European businesses find it increasingly hard to secure funds against a gloomy economic backdrop.

A number of suppliers stopped deliveries to Schlecker following the insolvency filing, including P&G, the maker of Pampers diapers and Gillette razors, and Unilever , which makes Dove body care products and Rexona deodorants.

Other big suppliers to Schlecker are Beiersdorf, the German maker of Nivea skin cream, and Henkel, whose brands include Persil in Germany, Schwarzkopf hair products and Pritt stick glue.

A court-appointed insolvency administrator, Arndt Geiwitz, has been negotiating with creditors and suppliers and crossed the biggest hurdle, an agreement with Schlecker's biggest creditor Markant, on Wednesday.

Schlecker's landlords were also trying to safeguard their investments and have approached rival drugstore chain Rossmann.

"Many landlords have approached me. A few hundred have offered me their stores," founder Dirk Rossmann told Reuters on Friday, adding he would not make a move on any of the outlets until he has spoken with administrator Geiwitz.

Rossmann said he expects Schlecker, which last year announced plans to shut 700 to 1,000 stores, to drop back to Germany's No.3 drugstore chain this year with about 5 billion euros ($6.58 billion) in sales.

He expects his chain to post 5.6 billion euros in sales, making it second to dm with 6.7 billion euros.

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