140 jobs lost!

Depot is now closing all 24 of its stores in Austria

By the end of January 2027, Depot will be a thing of the past in Austria.(Bild: Depot)

The home accessories chain Depot is withdrawing completely from Austria. All 24 stores will be closed by January 31, 2027, at the latest, and around 140 employees will lose their jobs.

Owner Christian Gries (55) confirmed the withdrawal in an interview with the “Krone.” The staff was informed at noon today—via a Microsoft Teams call, as Gries explains: “I wanted to talk to everyone and explain the background to the employees once again.” A major clearance sale is now underway for customers.

Not bankruptcy, but an orderly winding down
Important for those affected: Unlike in Germany, where the Depot stores there were already closed as part of an insolvency proceeding (the last stores shut down at the end of September), Austria is opting for an orderly winding down—without insolvency proceedings. “We’re going to wind down operations in Austria properly. I don’t want bankruptcy,” Gries emphasizes.

“It’s absolutely important to me that we bring this to a reasonable conclusion. If we file for bankruptcy, then the employees and landlords will receive less money—or none at all. Christmas is coming soon, and the employees will receive their salaries as contractually agreed.

Owner Christian Gries can “no longer run the chain profitably.”(Bild: Depot)

Specifically, this means that the 140 employees—according to Gries, “mainly women,” especially store staff—will remain employed until the end of January and will receive their regular pay, including the double paycheck in November (Christmas bonus). “This is important to me because I know how much gets left behind in an insolvency. That’s why I don’t want to file for insolvency, but rather wind things down properly so that everyone involved is treated fairly.”

However, there will be no social plan or employment foundation. “No, we haven’t planned for that at this time. We don’t have that many employees in Austria. I know they’re all so good, and hopefully many will find a new job quickly.” His staff are “used to passionate and intense work; everyone is very dedicated. It’s a great team.” “Standard terminations” will be issued.

Why Depot Can No Longer Be Run Profitably
The reasons for the closure are manifold. “As things stand today, it’s not possibletorun Depot profitably. Many retail companies are in the same boat. We’re not the only ones,” says Gries. “Yes, we’ve made mistakes too. We also have to say that we’re self-critical.” The company had been trying for some time to turn things around and return to profitability—to no avail.

A key factor: fierce competition from discount chains. “We’re noticing that the discount trend is extremely strong right now and getting stronger all the time,” says Gries. In Germany, “nearly the majority” of the new tenants taking over the vacated Depot locations are discounters like Action, TEDi, or KiK. “People want to buy ‘cheap’ and not spend a lot of money. Inspiration is no longer the driver behind shopping.”

At the same time, Chinese online retailers like Temu are putting pressure on Depot—partly because EU punitive tariffs on certain product categories, such as ceramics or candles, have caused prices to skyrocket. “If we used to pay 10 euros for something, we now have to pay 20 euros because of the punitive tariff. And then the customer has to pay 40 euros for a plate instead of 20 euros.” At Temu, the same plate costs 10 euros, since tariffs there only apply to higher-value goods—a scenario that almost never occurs and may even be offered by the manufacturer itself.

The company is launching the sale starting Wednesday.(Bild: Vergil Siegl)

Added to this are rising rents due to indexation, wage increases, and higher freight costs—for example, due to the partial closure of the Suez Canal and 30-day delays for containers from Asia. “These are all just a few examples of small factors that, of course, have a massive impact on our business model.”

For customers: The big sale starts right awayat
 For bargain hunters, the big sale begins on Wednesday—“it really kicks off tomorrow,” says Gries. It starts with a 30 percent discount on everything, “which is already a lot. So we want to really clear out inventory right away.” The discounts will continue to increase through the end of January, “depending on how the sale goes.” “Customers can score some massive bargains with us for Christmas.”

Gries has specifically purchased new merchandise “for a seven-figure sum” to be able to pay rent and salaries until the very end. New merchandise will be available in stores weekly. A test run in Kitzbühel has already been completed—with a very positive response: “Customers flocked to our store, and the sought-after items sold out immediately.” Existing gift cards must be redeemed by January 31, 2027, at the latest.

The 24 locations—which Gries describes as “prime locations,” about ten of which are jointly operated with Spar’s shopping center subsidiary SES—will be re-leased after the closure. As for what will move in there, “that’s up to the landlords to decide.” Only one thing is certain for Gries: “I won’t run a discount store. I can’t do that anyway.” He doesn’t want to “let Depot fall by the wayside” and is considering “building something new”—“when the time is right.” Perhaps then they’ll “come back to Austria again.”

A German living in Austria
Gries,a native of Aschaffenburg, has been living in Tyrol since December 2021—originally at his son’s request. “It’s beautiful here, and we really like the people in Austria,” he says. His heart is definitely attached to the location, which makes saying goodbye all the harder: “Saying goodbye to Depot in Austria as a business is anything but easy for us. I deeply regret that we now have to close this chapter.” He extends his thanks to the employees, “who have shaped Depot with great dedication, passion, and personal commitment,” as well as to the customers for their long-standing loyalty.