Baumax Announces Exit From Hungary
- 22 Jan 2015 12:50 AM
DIY-chain Baumax will shut down its Hungarian operations, closing all 14 shops by April, the Austrian company has announced. The retailer’s four stores in Budapest and ten outside the capital operate with 788 staff.
The 14 properties will be taken over and utilised by Austrian furniture retailer XXXLutz.
Baumax plans to focus its resources on the Austrian, Czech and Slovak markets.
“We have always said we wanted to stay, but due to the tough conditions we have to say goodbye to Hungary and focus on the other three countries”, chairman Michael Hürter said.
The company recently withdrew from Turkey, Bulgaria and Romania.
The company did not disclose any details on possible measures concerning the staff.
Baumax closed last year with a Ft 3.2 billion loss, the same as in 2013, on revenue of Ft 23.1 billion, Ft 200 million more than in the preceding year.
DIY stores in Hungary are expected to suffer from the restriction on Sunday shopping.
Source: Hungary Around the Clock
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