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It has been a razor blade ride: As the problems at Praktiker became so evident in July 2013 that the German parent company was forced to file for insolvency, the numerous country subsidiaries of the DIY chain operator became embroiled in the turbulence. Although it was just the German core business sector that actually went into liquidation, how is one to explain this situation to the local lessors, banks, suppliers and employees in Romania? A problem, which Karl-Heinz Keth, CEO of Praktiker Magyaros¸zág Kft since 1998, also had to face. In 2013, he was head of over 19 Praktiker stores and around 1 000 employees in the Magyar republic.
What followed was a pure fight for survival and a loosening of ties from the German parent company. The German liquidator Christopher Seagon negotiated with around 25 possible investors from Canada, the USA, Switzerland and of course, Hungary. In the meantime, Keth was fighting to keep "his" Hungarian Praktiker subsidiary alive and looking to improve the conditions for a continued existence. So he talked and battled with anyone and everyone who was in some way connected, whether with money, property or goods, to Praktiker Ungarn.
Looking back today, Keth says he was sometimes at the limit and maybe even over the limit, in his capacity as CEO, to do some of the things he did. But the success proves him right. For example, he had to put up with a lot of teasing in 2013, from colleagues from the national competitor Baumax, about how long he would last in Hungary. Today: Baumax (closure of 14 stores in April 2015) as well as Bricostore (closure of nine stores in December 2013) no longer exist. A factor, which has played into the hands of Keth, as he himself admits, because the collapse of two competitors certainly made the conditions for Praktiker Hungary suddenly a whole lot better. Best of all: In October 2016, Praktiker Hungary opened its 20th store in the Budapest district of Ujpest - in a store previously owned by Baumax. A certain amount of satisfaction is noticeable in Keth, who has a 25 per cent share in Praktiker Hungary alongside the main owner, the Hungarian financial investor Wallis Asset Investment.
What followed was a pure fight for survival and a loosening of ties from the German parent company. The German liquidator Christopher Seagon negotiated with around 25 possible investors from Canada, the USA, Switzerland and of course, Hungary. In the meantime, Keth was fighting to keep "his" Hungarian Praktiker subsidiary alive and looking to improve the conditions for a continued existence. So he talked and battled with anyone and everyone who was in some way connected, whether with money, property or goods, to Praktiker Ungarn.
Looking back today, Keth says he was sometimes at the limit and maybe even over the limit, in his capacity as CEO, to do some of the things he did. But the success proves him right. For example, he had to put up with a lot of teasing in 2013, from colleagues from the national competitor Baumax, about how long he would last in Hungary. Today: Baumax (closure of 14 stores in April 2015) as well as Bricostore (closure of nine stores in December 2013) no longer exist. A factor, which has played into the hands of Keth, as he himself admits, because the collapse of two competitors certainly made the conditions for Praktiker Hungary suddenly a whole lot better. Best of all: In October 2016, Praktiker Hungary opened its 20th store in the Budapest district of Ujpest - in a store previously owned by Baumax. A certain amount of satisfaction is noticeable in Keth, who has a 25 per cent share in Praktiker Hungary alongside the main owner, the Hungarian financial investor Wallis Asset Investment.
Today Praktiker Hungary is the clear number two in the country, behind Obi with 29 stores and…
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