Monday, August 12, 2013

Austrian Retailer Dayli Closes, 2,000 Jobs Go


Tue., August 13, 2013
Drug store chain Dayli will close with the loss of 2,000 more jobs after no investor put up cash to prevent Austria's biggest retail collapse in two decades, its court-appointed administrator said on Monday, Reuters reported. "Investors claimed up to the end they wanted to cover the running losses but the money did not come," administrator Rudolf Mitterlehner said in a statement, adding creditors and a bankruptcy court had agreed to pull the plug. The decision closes the last 522 Dayli stores and a warehouse. Outlets in Luxembourg and Belgium remain open for now, as does central management in the off chance that investors may want to buy assets out of bankruptcy proceedings. Around 40 percent of Dayli's shops closed last month to save money while the company hunted for an investor. Dayli's closure poses a fresh test of whether a strong safety net that helps Austria enjoy the European Union's lowest jobless rate can handle a wave of corporate failures.

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