Major Home Improvement Retailer Faces Closures Across Germany

A prominent name in the construction and agricultural supply sector, Baywa, is grappling with significant operational challenges, leading to the impending closure of numerous locations across Germany. With a national presence of 400 outlets, the company has announced plans to shut down 26 of these sites, a move that raises concerns for both consumers and the agricultural community dependent on its services.

Baywa, which emerged from the cooperative movement, stands as Germany's largest agricultural dealer, playing a crucial role in supporting farmers and ensuring food supply in southern and eastern regions of the country. In addition to agricultural products, Baywa also offers a wide array of home improvement items, making it an essential resource for the general public.

The restructuring plan will result in the elimination of approximately 1,300 full-time positions, with over half of these layoffs already executed. As of now, the closure dates for 15 of the 26 affected locations have been confirmed.

Five of Baywa's construction supply outlets are slated to close by the end of April, specifically in the towns of Mittelneufnach, Ehingen, Scheßlitz, Neu-Ulm, and Obertraubling. Notably, the closure in Ehingen pertains solely to the construction supply segment, while the adjacent technical facility will remain operational. According to company representatives, the decision to close these locations stems from routine evaluations of the site network and is influenced by strategic considerations and the substantial investment required for facility upgrades.

Further closures are planned for eight additional locations in Bavaria, with the following timeline: Kronach and Triftern will cease operations on June 30, while Gars and Rothenfeld will follow suit mid-year. By the end of 2025, sites in Thiersheim, Schwandorf, Gangkofen, and Velden will also close. The closure schedule extends to two locations in Baden-Württemberg, with Altensteig set to close on May 31 and Niederstotzingen on December 31.

Confirmed Closure Dates:

• Mittelneufnach (Bavaria): April 30
• Ehingen (Baden-Württemberg): April 30 (construction only)
• Scheßlitz (Bavaria): April 30
• Neu-Ulm (Bavaria): April 30
• Obertraubling (Bavaria): April 30
• Altensteig (Baden-Württemberg): May 31
• Gars (Bavaria): June 30
• Rothenfeld (Bavaria): June 30
• Triftern (Bavaria): June 30
• Kronach (Bavaria): June 30
• Schwandorf (Bavaria): December 31
• Gangkofen (Bavaria): December 31
• Niederstotzingen (Baden-Württemberg): December 31
• Thiersheim (Bavaria): December 31
• Velden (Bavaria): December 31

This restructuring reflects a broader effort by Baywa to stabilize its operations amid financial difficulties, which have been exacerbated by a failed expansion strategy funded by debt in the past decade. The company reported a staggering net loss exceeding 640 million euros for the first nine months of 2024.

To facilitate this transition, Baywa has reached a revised financing agreement with its main banking partners and major shareholders, aimed at supporting its restructuring initiatives through 2028. The new leadership under Frank Hiller has emphasized the importance of returning to core business operations, signaling a commitment to recovery despite the challenging economic landscape.