Praktiker AG was a German hardware store chain which operated in Europe. It was based in Hamburg and opened its first store in 1978 in Luxembourg under the name bâtiself. Initially owned by ASKO, the chain became a division of Metro AG after the merger of ASKO with Metro Cash & Carry in 1995. It was spun off under the name Praktiker Holding in November 2005 and listed on the Frankfurt Stock Exchange . Since 2006 until 2011 was listed on MDAX and since 2011 until 2013 on SDAX .
16-435: In contrast to most of its German competitors, the company grew up by buying up various small DIY chains and building material stores. In addition, there was expansion into the new federal states and other European countries in the 1990s. After Metro AG's withdrawal as shareholder in 2006, the company experienced an existential crisis and posted high losses for years. Despite intensive efforts and considerable financial injections,
32-559: A prompt resolution of a distressed situation. Corporate debt restructuring is the reorganization of companies' outstanding liabilities. It is generally a mechanism used by companies which are facing difficulties in repaying their debts. In the process of restructuring, the credit obligations are spread out over a longer period with smaller payments. This can better allow the company to meet its debt obligations. Also, as part of this process, some creditors may agree to exchange debt for some portion of equity. Working with companies in this way in
48-471: A timely and transparent manner may go a long way to ensure their viability, which is sometimes threatened by internal and external factors. The restructuring process attempts to resolve the difficulties faced by a corporate body and enable it to become viable again. Steps: In corporate restructuring, valuations are used as negotiating tools and more than third-party reviews designed for litigation avoidance. This distinction between negotiation and process
64-464: Is a difference between financial restructuring and corporate finance . From the point of view of transfer pricing requirements, restructuring may entail the need to pay the so-called exit fee (exit charge). See Valuation (finance) § Valuation of a suffering company for discussion of the approaches taken. Historically, European banks handled non-investment grade lending and capital structures that were fairly straightforward. Nicknamed
80-495: The "London Approach" in the UK, restructurings focused on avoiding debt write-offs rather than providing distressed companies with an appropriately sized balance sheet. This approach became impractical in the 1990s with private equity increasing demand for highly leveraged capital structures that created the market in high-yield and mezzanine debt . Increased volume of distressed debt drew in hedge funds and credit derivatives deepened
96-860: The 9 stores after it failed to find a buyer. Later stores were bought by Uygulama Yapı Marketleri Inc. and were reopened, followed by the opening of new stores. The three Luxembourgian "bâtiself" stores in Foetz , Strassen and Ingeldorf were sold in October 2013. Now the bâtiself stores were rebranded and are not anymore related to the Praktiker brand. In Ukraine , the first store was opened on November 29, 2007 in Donetsk , three more opened in Lviv , Mykolaiv and Kyiv . The stores were sold on February 11, 2014 to Ukrainian investor Kreston Guarantee Group. The network
112-629: The Max Bahr stores on February 25, 2014. External subsidiares were not affected by the bankruptcy . All of them were sold to other companies between 2013 and 2015. The name Praktiker continues to be used by former subsidiaries in Bulgaria, Greece, Hungary and Turkey. In 2016 two German businessmen acquired the naming rights and opened under praktiker.de a home improvement online store . In 1979 Praktiker opened its first four stores in Germany. Over
128-596: The act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include a change of ownership or ownership structure, demerger , or a response to a crisis or major change in the business such as bankruptcy , repositioning , or buyout . Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring. Executives involved in restructuring often hire financial and legal advisors to assist in
144-570: The attempts to restructure failed. On July 10, 2013 Praktiker AG filed for insolvency at the Hamburg district court the following day for the eight domestic subsidiaries, including Extra Bau+Hobby. The insolvency application for Praktiker AG was filed on July 12, 2013 at the Saarbrücken District Court and on 25 July 2013 for the Max Bahr subsidiary. The Praktiker and Extra stores were closed on 30 November 2013, followed by
160-581: The end of February 2014 (remaining Max Bahr stores). The Bulgarian subsidiary, Praktiker EOOD, was sold to Videolux Holding AD. The company which operates electronics retailer Technopolis, opened two new stores and reconstructed all Praktiker stores in the end of 2017. Praktiker Greece was sold on April 8, 2014 to Canadian investor Fairfax Financial . The 19 Hungarian Praktiker stores were sold to Papag AG in January 2015, and again to Wallis Group in January 2016. In Turkey , Praktiker initially closed
176-587: The former Praktiker stores are now part of the Castorama network detained by Kingfisher. In Albania , the first store was opened on October 30, 2009 in Tirana . It was closed on November 30, 2011 due to the restructuring. In Moldova , the company had planned to open a store in 2009 in Chişinău , but it was canceled later. Restructuring Restructuring or Reframing is the corporate management term for
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#1732790387998192-583: The insolvency applications in July 2013 all those plans are stopped, with 54 former Praktiker stores already transferred to Max Bahr outlets. The companies Hellweg and Globus failed to reach an agreement with the Royal Bank of Scotland to buy 59 Max Bahr stores in November 2013. All Praktiker, Extra Bau+Hobby and Max Bahr stores were closed by the end of November 2013 (Praktiker, Extra, 40 Max Bahr stores) or at
208-405: The market—trends outside the control of both the regulator and the leading commercial banks. A company that has been restructured effectively will theoretically be leaner, more efficient, better organized, and better focused on its core business with a revised strategic and financial plan. If the restructured company was a leverage acquisition, the parent company will likely resell it at a profit if
224-525: The transaction's details and negotiations. It may also be done by a newly-hired CEO specifically to make the difficult and controversial decisions, required to save or reposition the company. It generally involves financing debt, selling portions of the company to investors, and reorganizing or reducing operations. The basic nature of restructuring is a zero-sum game . Strategic restructuring reduces financial losses, simultaneously reducing tensions between creditors and equity holders, in order to facilitate
240-475: The years Praktiker took over many smaller companies and changed most of their stores into Praktiker stores: The Praktiker management began in late 2012 with the transformation of 119 Praktiker stores to Max Bahr stores. At the end of this process in December 2013 Germany should have 117 Praktiker and 196 Max Bahr outlets, at the beginning of that process there were 236 Praktiker and 78 Max Bahr stores. Because of
256-618: Was rebranded in 2017 as Leroy Merlin . Praktiker Romania S.R.L. which operated 27 stores in Romania , was sold to Search Chemicals in February 2014,. In 2017, 20 stores were bought by Kingfisher plc , and rebranded as Brico Dépôt . The 24 Praktiker stores in Poland were sold to Papag AG in March 2014. However the group was declared bankrupted in 2017, and all the stores were closed, part of
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