BayWa AG: Retail Subsidiaries Face Closures and Insolvency

German retail conglomerate BayWa AG is facing substantial disruption within its discount retail holdings, as subsidiaries Kodi and Mäc Geiz navigate store closures and insolvency proceedings. Kodi, a non-food discounter, will close 19 of its 144 stores, all located in North Rhine-Westphalia, where the company believes there is no economically viable future. An additional 56 stores are subject to ongoing negotiations regarding their future, while 69 are slated to remain open. Kodi filed for insolvency in self-administration in July.

The closures come after a prior restructuring in 2024, which saw the company reduce its footprint from approximately 240 stores to 150, resulting in over 500 job losses. Approximately 1,200 people are currently employed by Kodi, and employees at the closing locations will receive termination notices following the expected opening of the insolvency proceedings in early October. The average Kodi store employs six people, but the total number of affected employees remains undisclosed.

BayWa’s acquisition of Mäc Geiz in February has also encountered difficulties, with the chain, primarily operating in eastern Germany, also filing for insolvency in May. This has already led to the closure of around 50 stores. These challenges follow similar distress signals in the German retail sector, including the impending closure of the Deko-Kette Depot and the self-administration proceedings initiated by Baumarktkette Hellweg and Baywa Bau- & Gartenmärkte in June.

The broader retail environment in Germany is demonstrably weakening. Kreditversicherer Allianz Trade reports that the number of retail insolvencies has reached a ten-year high, with over 2,600 retailers declaring bankruptcy between June 2025 and May 2026. While the rate of increase has recently slowed, the persistent surge in insolvencies indicates a significant strain on German consumers and the overall economy, suggesting a broader slowdown in discretionary spending and increased financial pressure on households.