Former CEO in Custody

kika/Leiner: Expert Report Supports Allegations of Flood-Related Scam

Were people in dire straits deliberately defrauded of their money as well? According to an expert report, kika/Leiner’s insolvency was already clear even before the discount campaign...(Bild: Krone-Collage/APA/HELMUT FOHRINGER, APA/HARALD SCHNEIDER)

To inflict further financial harm on people already facing the ruins of their livelihoods—the charges against former kika/Leiner CEO Hermann W. are serious. An expert report now confirms that the company’s insolvency was already apparent before the flood-related discount campaign. Furthermore, W. is also alleged to have lined his own pockets. 

Nearly two years ago, extreme storms and flooding caused damage totaling over one billion euros. Those affected were primarily residents of the Tullnerfeld region in Lower Austria, but the rest of the state was also impacted. In many places, people were left facing partially destroyed homes, with furniture and belongings buried under mud.

Insolvent Even Before the Discount Campaign
At the time, under Managing Director W., kika/Leiner had offered those affected by the storms a 20 percent discount on new furniture, kitchens, or similar items—according to the Public Prosecutor’s Office for Economic Affairs and Corruption, however, at a time when the furniture retailer’s bankruptcy was already evident. As the “Krone” learned, an expert report prepared even before the discount campaign confirmed kika/Leiner’s insolvency.

Were people in a state of emergency deliberately defrauded of their money? According to an expert report, kika/Leiner’s insolvency was already clear before the discount campaign...(Bild: Krone-Collage/APA/HELMUT FOHRINGER, APA/HARALD SCHNEIDER)

The company finally went bankrupt in 2025; its fate was sealed.(Bild: Andreas Tröster)

The WKStA states that the allegation of “systemic fraud” is therefore clearly substantiated. For this charge, so-called “conditional intent” is sufficient—that is, even if the accused did not consciously intend to deceive customers, he would at least have accepted that as a consequence. 

Already 4,700 Victims
There are now 4,700 victims who paid a deposit for their furniture but never received it. The total damages amount to 15 million euros. As a result, the St. Pölten District Attorney’s Office transferred the case to the WKStA. And there is yet another charge pending against W., namely that of fraudulent bankruptcy. 

Paid a deposit on furniture but never received it?

Those affected by the kika/Leiner discount promotion in the wake of the 2024 floods can report directly to the police!

According to the WKStA, he is alleged to have approved invoices shortly before the furniture store’s bankruptcy “without any apparent consideration,” which the WKStA views as causing harm to creditors. Particularly explosive: One of the invoices is said to have been issued by a company owned by W. The total amount of damages in this case amounts to 1.1 million euros. 

Attorney Cites “Prejudgment by the Media”
W. has been in pretrial detention for three days; his defense attorney spoke to ORF about “media prejudgment” and emphasized that his client’s “immediate release” is necessary. It is not known whether he has already filed a corresponding motion, including an appeal, as he could not be reached by the “Krone” on Wednesday. 

The furniture store had been purchased in 2018 by Signa—which has since gone bankrupt—owned by René Benko, who is currently also in pretrial detention. Benko then sold the Kika/Leiner properties to the Graz-based real estate developer Supernova in 2023 and handed over the operational furniture business to retail manager W.

Shortly thereafter, the company filed for bankruptcy for the first time. After the second bankruptcy in November 2024, W. was unable to secure either fresh funding or an investor, sealing the company’s fate.