Baumax leaving Turkey

The Austrian DIY retailer Baumax, which has got into financial difficulties, is withdrawing from Turkey. The seven outlets on the Bosphorus and in Asia Minor are to be disposed of by the middle of the year. Withdrawal from other east European countries are to be decided by the beginning of May at the latest. The company is giving a guarantee on the stores in Austria, but no job guarantee. Baumax is in debt to the banks and other lenders/suppliers to the amount of around € one bn. The banks have agreed a moratorium with the company that will run until 30 September 2016. The company has disclosed that sales of Baumax in Austria and the neighbouring states progressed “very well” in the first quarter, though no precise figures have been mentioned. Double-digit sales increases and performance improvements were achieved in March in Austria, the Czech Republic and Slovakia.