Realignment of the Tengelmann holding company making progress

  • Operating business of the former holding company to be discontinued as of 31.12.2019
  • Fair and transparent solutions agreed for affected employees
  • Special solutions for older employees
  • New holding company "Tengelmann Twenty-One" establishes strategic divisions for business development, investment management and talent management
  • Further development in international and strategic terms
  • Goal: Strengthen entrepreneurship and hand over the group in good shape to the next generation.

The announced realignment of Tengelmann Holding is making great progress. As at 31.12.2019, the operations of the previous holding company (Tengelmann Warenhandelsgesellschaft KG) will be closed down. The new holding company Tengelmann Twenty-One KG, Mülheim a. d. R., will take its place with a changed strategic and international orientation. A reconciliation of interests and a social plan have now been concluded for the employees of the former holding company, which takes into account the committed, loyal and in some cases very long-standing work of the employees.

Fair and transparent dealings with employees

After a nine-month employment guarantee had already been issued for all employees in January, fair and socially acceptable solutions for leaving the company could now be agreed together with the employee committees. The social plan provides for the following key points:

  • Each employee receives one gross monthly salary per year of service as severance pay.
  • Employees over the age of 55 receive a higher severance payment,
  • There are special regulations for employees shortly before retirement
  • Outplacement measures as an option alternative to base compensation
  • In addition, severance payments will increase again for employees with dependent children and for single parents and severely disabled persons.

Termination of employment for operational reasons will be issued after expiry of the agreed employment guarantee at the end of October. With the agreements supported jointly by the management and the works council, arrangements have now been found for the employees concerned to ensure an appropriate transition into a new phase of their professional lives or into retirement, in view of the fact that some of them have been with the company for many years.

"Right from the start, our aim was to make the loss of jobs associated with the realignment of the holding company very socially acceptable for our employees. We succeeded in this together with the employee committees," is how Christian Haub classifies the agreements.

Lean holding company with focus on strategic control and internationalization

Since many of the operational tasks currently performed by the holding company will in future be carried out by the subsidiaries themselves, the new Tengelmann Twenty-One holding company will be able to streamline its staff considerably.

In addition to the existing Finance, Tax and Legal divisions, there will be new divisions such as Business Development, Investment Management and Talent Development. These will pursue an overarching approach and provide a more strategic view of the investments. The internationalisation strategy pursued in the past will be continued consistently and intensively. New employees with an international background will therefore be recruited accordingly.

The management will be carried out by CEO Christian Haub together with Ágnes Faragó (CFO) and Dr. Andreas Guldin (CSO).

Managing partner Christian Haub: "With the further development of the holding in operational and strategic terms, we would like to strengthen the entrepreneurship of our holding companies and the holding itself. As in the past, this is the basis on which Tengelmann will one day be handed over to the next generation in the best of shape".