Rewe to Acquire Insolvent Feneberg Supermarket Chain, Securing 3,000 Jobs

Rewe has emerged as the successful bidder in the acquisition of the insolvent Feneberg supermarket chain, following months of negotiations and competition with Edeka. This decision affects approximately 3,000 employees and 72 store locations across southern Germany, particularly in the Allgäu region.

Acquisition Details and Approval Process

The creditors' committee has given initial approval for the takeover, with final consent pending from both the creditors' assembly and the German Federal Cartel Office. Rewe's bid, presented in partnership with the newly established LEH Allgäu GmbH, was considered more advantageous for both creditors and employees compared to Edeka's offer. Feneberg, previously part of the Edeka network and sourcing much of its product range from Edeka, will now see its stores incorporated into Rewe's operational structure.

Impact on Feneberg's Operations and Staff

Rewe and LEH Allgäu GmbH will divide the Feneberg stores, with Rewe taking over around half of the branches as well as the Landbäckerei Sinz in Durach. The remaining outlets will continue to operate under the Feneberg brand, managed by LEH Allgäu GmbH. The company's regional sourcing program, "VonHier," is set to continue, ensuring ongoing collaboration with local producers and farmers, which remains a significant aspect for the region's agricultural stakeholders.

For the workforce, the majority of jobs are expected to be retained. Rewe and LEH Allgäu GmbH plan to maintain roughly equal staffing levels, subject to the Cartel Office's final ruling on the store division. Existing employment contracts for those joining Rewe will remain unchanged, according to company statements. Administrative roles, however, may be consolidated or reduced depending on the final structure adopted by each acquiring entity. The headquarters and logistics operations in Kempten are also planned to remain intact, supporting both administrative continuity and supply chain stability.

Customer and Market Implications

Customers of Feneberg can expect continued service across all locations. Approximately half the stores will be rebranded as Rewe supermarkets, while the rest will continue operating under the Feneberg name. The ongoing operation of the "VonHier" program ensures that local and regional products will remain available. The company's network of service stations is also set to continue without interruption.

Background on the Feneberg Insolvency

Feneberg filed for insolvency in self-administration in January 2026. The Kempten district court officially opened the proceedings in April 2026. The insolvency was attributed to structural challenges within the store network, a heavy debt burden, and outstanding legacy obligations. Despite these challenges, the chain achieved annual revenues exceeding 500 million euros in its most recent financial year.

The acquisition by Rewe marks a strategic expansion in the Allgäu region and secures the majority of jobs associated with Feneberg. The transaction represents a significant development in the German grocery sector, concluding a highly competitive bidding process that saw major national retailers vying for market position.