Praktiker

Praktiker AG is the German holding company of several DIY chains in Europe. Distribution lines in the main market Germany were practitioners and extra Bau Hobby ( closed 31 October to 30 November 2013) and Max Bahr ( closed on February 25, 2014). The company employed around 20,000 employees around three billion euros per year and has become well known by its slogan " 20 % off everything ." The share of the Company is listed. Chairman of the Board since October 15, 2012, Armin Burger.

The company founded in 1978, grew up in contrast to most of its German rivals zoom through the acquisition of various small hardware store chains and construction activities. Added to this was in the 1990s, the expansion in the new federal states and other European countries. After the withdrawal of Metro AG as sole or majority shareholder in the years 2005/ 06, the company got into an existential crisis and wrote about years heavy losses. Despite intensive efforts and substantial financial injections restructuring attempts did not intervene.

On 10 July 2013, the company declared over-indebted and insolvent and placed on the next day the Hamburg District Court for insolvency for the eight domestic subsidiaries DIY Praktiker Germany GmbH, DIY Praktiker DIY GmbH, DIY practitioner GmbH, DIY Praktiker Online GmbH, hardware store, Max Bahr practitioners shopping GmbH, DIY practitioner goods Handelsgesellschaft mbH, DIY practitioner Fourth GmbH and DIY Praktiker Services GmbH. The file bankruptcy for Praktiker AG was provided at the District Court Saarbrücken on 12 July 2013. Practitioners stated that the operation of all hardware stores should be fully maintained. Foreign business is not affected by the insolvency. On July 25, 2013, it was reported that Max Bahr has filed for bankruptcy. The practitioner and Extra stores were finally closed on 30 November 2013, the Max Bahr stores followed on 25 February 2014.

History

Practitioners as part of the Metro Group

Practitioner was founded in 1978. The first hardware store was established in 1978 under the name Bâtiself opened in Luxembourg. Parent company was based in Saarbrücken Asko German Kaufhaus AG (now Metro). In 1979 practitioners in Germany nine BayWa hardware stores and also opened four new markets. In 1982, the discount principle was gradually introduced. As of 1985, expansion through acquisition of additional hardware stores, the Wickes DIY stores and finally in 1990 the real purchasing hardware stores. 1991 in Greece, the first store was opened. After nearly 15 years, came in 1992 to a cleanup. Metro Cash & Carry, which was part of the Massa Wholesale Ltd., split from the hardware store part and sold it to practitioners. The fuselage section was renamed to Real Wholesale AG. Similarly with BLV (Bayerische stock supply) and extra procedure was. The first steps towards the pending merger and market adjustment were completed with it.

After taking over the smaller hardware stores BLV, massa, MHB, Huma and extra practitioners in 1995 went on German Kaufhaus AG by merger with Metro Cash & Carry to Metro AG as part of the Asko. In 1996, the acquisition of additional DIY building society, 1997 by Wirichs. This year also the first store was opened in Poland in 1998 was followed by markets in Hungary and Turkey. Practitioners now belonged to the majority of Europe's largest retail group.

In 1998, Metro opened in Erfurt its 250th Praktiker store; In 2003 they celebrated the 25th anniversary of Praktiker stores. 2000 made ​​further rationalization and the acquisition of 27 top home improvement stores. From 2004 to 2005 continued to expand practitioners and opened the first hardware stores in Turkey, Bulgaria and Hungary. 2002, Metro AG acquired 100 % of the shares and took the chain from the stock market ( delisting ).

The end of 2004 came practitioner, as well as Bauhaus, from the BHB sector association ( Association of German DIY, Building and Garden Stores ) from, in October 2010, the re-entry.

IPO, sale of real estate and retreat of the Metro

On 22 November 2005 brought Metro, Praktiker AG again on the Frankfurt Stock Exchange and thus reduced its shareholding to 40.5%. At the same time, the company changed its name to Praktiker home improvement and DIY markets in Praktiker Bau AG and home improvement Holding AG. The issue price of 14.50 € 34.5 million shares were issued by allotment. The issue volume amounted to 500 million euros, of which practitioners remained 111 million as net proceeds after deduction of all costs. The first quotation was EUR 14.90. Lead was the U.S. bank JPMorgan Chase & Co..

On 7 December 2005, the Metro sold its 53 Praktiker Real Estate for 480 million euros to the real estate investment company Curzon Global Partners. Finally, the Metro AG announced on 10 April 2006 with a compulsory publication that it would divest itself of its remaining share of the home improvement chain.

With the IPO, the goal of expansion in Eastern Europe has been linked. From 2006 to 2011, the share in the MDAX share index of the Frankfurt Stock Exchange was noted. From 19 September 2011 to 20 September 2013, it belonged to the SDAX.

Acquisition of extra hardware stores

After the extra food markets were sold by Metro to Rewe, the extra hardware stores have been incorporated to practitioners. Furthermore, smaller Praktiker stores were renamed Extra. Some Extra stores were operated as a franchise.

Acquisition of Max Bahr

In February 2007, the chain Max Bahr, consisting of 77 DIY stores with about 3,200 employees, over. Max Bahr has since been as a premium brand, practitioners as discount brand of Praktiker Holding on.

With the acquisition hoped practitioners, its market share in Germany from previously 7.2% to about 9% to lift and become the market leader Obi which 9.7% market share held, to be able to catch up. Furthermore, practitioners expected synergies from 2008 ( in 2009 about 20 million euros ). The integration costs were estimated at 12 million euros. In addition to operating business practitioners acquired a 24 percent stake in Max Bahr Real Estate Company. Market observers had seen a consolidation in the market for some time and had seen this in the step of practitioners.

Crisis from 2009

In March 2009 (at the beginning of an economic crisis ) received the Praktiker Holding, the first German retail company at all, the approval for the introduction of short-time work. This was initially introduced in the context of a strict austerity measures later this month in 84 markets with a total of around 4,000 employees, coupled with a hiring freeze, a freeze in the salaries of executives, the reduction of the dividend for shares of 0.45 to 0.10 euros and a break in the international expansion. With effect from 31 March 2009, the Berliner small-area concept was Max - the little hardware store from the distribution chain Max Bahr after about four years of trial run set.

The CEO Wolfgang Werner announced on 20 July 2011 that he would resign from his position.

Thomas Fox was October 1, 2011 the new CEO of the Group. Similarly, Josef Schultheis was appointed to the Board from 16 June 2011, he took over to Fox's office in October as acting as CEO. Both were already working together at Karstadt and were appointed for two years. Thomas Fox was replaced 13 May 2012 by the former Hertie chief Kay Hafner.

After years of losses in 2010 and 2011, a restructuring program was adopted, according to which about half of the Praktiker stores are to be reflagged to Max Bahr, of which until April 2013 57 sites have been upgraded. The other Praktiker stores will also be modernized. Negotiations for a loan over the Anchorage Capital Europe - which have long been designated by the Board as alternative - end of August 2012 have been announced, according to Board always more conditions were asked by Anchorage, which were impossible to fulfill. Since then ran talks with the Vienna private bank Semper Constantia, which at the time 14.97% of Praktiker shares held together with the allied fund Maseltov, this came early in October 2012 to a successful conclusion. On October 11, 2012, the long-time Board Chairman Kersten von Schenck resigned. For the Turkish subsidiary practitioners Yapi Marketleri A.Ş. 2013 has been filed bankruptcy in February.

Between 2011 and early 2013, practitioners should have paid around 80 million euros of consulting services, including the management consultancies Roland Berger, Boston Consulting Group, McKinsey and the law firm Freshfields

Insolvency

On 10 July 2013, the Praktiker AG declared over-indebted and insolvent. On July 11, the company filed with the district court Hamburg file for bankruptcy for eight daughters. The AG should follow shortly thereafter. The subsidiary Max Bahr reported on 25 July on insolvency. Foreign business is not affected. All sites will be initially operated. On August 9 announced insolvency Christopher Seagon that 51 markets, including three extra Bau Hobby stores are to be closed by 31 October and sold if possible.

To save the company, the profitable subsidiary Max Bahr should be made to the main distribution line in Germany. 90 of 170 Praktiker stores should be more focused and continued on discount. For this restructuring plan were missing around 30 million euros.

On September 4, 2013, the liquidator announced that no investor had been found and therefore all practitioners and extra Bau Hobby stores must be closed. Thus, the company is completely liquidated. The sell-off in the rest of the stores began on Friday, 13 September 2013, and was completed on 30 November. According to insolvency, however, some branches could be continued under other brands, for example, took over the Bauhaus Germany 's largest store in Berlin -Wedding. In October 2013, the BM practitioner International GmbH sold its shares in the three Luxembourg " Bâtiself " branches at the DIY store operator CWA Sàrl. , These were sold to Hagebau in December. Also on other foreign companies of practitioners already running investor meetings. On October 25, the sell-off began in 40 Max Bahr stores. Responsible for part of Max Bahr insolvency Jens- Soeren Schroeder announced on November 15, 2013, after the failure of a takeover by its competitor Hellweg because of disputes to the Max Bahr Real Estate settlement of the company. The Royal Bank of Scotland had demanded of Hellweg a group guarantee, which did not afford the medium-sized companies. Shortly thereafter, the Saarland retail chain Globus reiterated interest in Max Bahr and the purchase of the stores. The prerequisite for this is an agreement with the owners of the houses, the Royal Bank of Scotland. Globe, the 59 of the 73 Max Bahr stores ( to Max Bahr umgeflaggte of Praktiker outlets are excluded) will continue to operate under the old name and the headquarters in Kirkel, agreed on 26 November 2013, the Royal Bank of Scotland to purchase the 59 branches. The signing of the agreements was still pending and should be conducted on 27 November 2013. But that day, it was announced that the sale to Globus failed and Max Bahr is broken.

In February 2014, the Ukrainian Praktiker stores were sold to the Ukrainian Investor Kreston Guarantee Group .. On February 25, closed the remaining Max Bahr stores, so the Praktiker Group is no longer active in the German market. The Romanian subsidiary SC Praktiker Romania SRL was of Search Chemicals S.R.L. bought. Search Chemicals will operate the markets under the brand " practitioner " on. The Bulgarian subsidiary practitioners EOOD is sold to the Videolux Holding .. The Swiss investor Parrot AG bought in March 2014, the 24 sites of Praktiker Polska Sp zoo on and intends to continue to operate under its existing name.

Structure and key figures

The practitioner had consolidated the end of 2010 a total of 438 markets (of which 236 Praktiker outlets, 17 extra Bau Hobby and 78 Max Bahr stores ) in ten countries (Albania, Germany, Luxembourg, Poland, Ukraine, Hungary, Romania, Bulgaria, Greece, Turkey), with nearly 21,500 employees ( full-time employees on an annual average, more than 11,800 of them in Germany, nearly 9,700 international ) and a sales area of 2.9 million square meters ( 2.1 million square meters of them in Germany ). He achieved a turnover of 3.5 billion euros, of which in Germany alone 2.5 billion euros. This was in comparison to the previous year (both for-like basis ), a decrease of 5.9 %, 6.3% in Germany and 4.8 % at Praktiker International. Divided by sales divisions accounted for 1.68 billion euros practitioner ( -8.4 %) and Max Bahr 685.5 million euros (-0.7 %). The equity ratio in 2010 was 41.4 %.

Practitioners had retired the end of 2006 from Austria; Finally, it had then given four more locations in Vienna, Wiener Neustadt and Graz.

2012, the company posted revenue of EUR 3,003 million to a loss of 190 million euros. 2011 the figure was 556 million euro loss on sales of 3,183 million euros. The debt rose to 491 million euros in the same period by 351. The company employs nearly 20,000 employees.

Own brands

In Praktiker range also several private labels, including budget, practitioners and Faust (furniture, tiles, interior items, lamps ), Alaska Platinum ( lights ), Fleurelle were ( across all ranges ), HomeFit (garden tools, plants, fertilizer ) and outdoor ( bikes, lawn equipment, camping).

Ownership structure

As of September 2013

Public perception

Practitioners campaigned since 2003 with the slogan " 20 % off everything - except pet food ". Reason for the exception in pet food was according to data from the Chairman Werner initially that would have fallen through the discount of the offer price under the cost price, which since 1999 has been prohibited by the Act against Restraints of Competition in the rule. But it is quite possible exceptions and the case law since then this created a certain interpretation framework, the practitioner used. In addition, since the margin usually is pet food over 20 percent, so that hardly threatens a violation of this law. Later, the addition in the slogan that certain cult character has gained served, only the imprint and brand recognition practitioners ( corporate branding ), as an indication that the DIY practitioners also leads the Sidelines pet food, as well. Than psychological reinforcement of the main advertising message

On 17 June 2008, the Oberlandesgericht Saarbrücken decided practitioners should no longer advertise with the slogan, since this "misleading" is. The DIY chain offers namely Tchibo products as goods on consignment, which is excluded from discount offers. An appeal of the company rejected the Federal Court. Then agreed practitioners with Tchibo whose products before the start of the 20 - to take actions % from the shop - in-shop shelves, and cover them in addition. Thus, the strong customer enticing promotion could be continued.

As part of a realignment of the pricing strategy, the number of 20% of actions in early 2008 was approximately halved, resulting according to the company to a significant decline in sales, which continued in 2009.

Spokesman for the " 20 % off everything " advertising campaign was the actor and voice actor Manfred Lehmann.

Criticism

According to a judgment of the Federal Court ( Case No. I ZR 122/ 06 of 20 November 2008 ) it has been forbidden to continue to advertise with the " 20 % off everything " slogan, if they have individual articles previously offered immediately cheaper. The Centre for Protection against unfair competition had appealed against the DIY chain, because these more expensive some items from their range just before the discount action in order to continue to offer this discount during the action at the regular price can. The Federal Court saw it as a misleading the consumer.

On 25 May 2010 the Polish cartel imposed a fine amounting to some 9.4 million euros against practitioners Polska Sp.zoo, operational Polish Group of Praktiker home improvement and DIY markets Holding AG for illegal price fixing 2000 to 2006.