Veganz supermarket closes four branches; files for bankruptcy

Veganz supermarket closes four branches; files for bankruptcy

Europe’s first vegan supermarket chain Veganz, with headquarters in Berlin, has filed for bankruptcy procedures due to financial woes. Vegaz would close four of its nine branches as a part of bankruptcy procedures. The supermarket was instituted by Jan Bredack, a former senior manager with Mercedes Benz. A former meat-eater, Bredack got inspired from vegan stores in Scandinavia, the US and Russia while he visited those countries.

The bankruptcy procedure came as a shock to many as the supermarket has been planning to expand to the United States with setting up a wholesale distribution center for Veganz products in the country. While the supermarket files for bankruptcy procedures, the parent company Veganz GmbH will not be affected. Veganz lowered its projected revenues for 2016 from €80 million to €56 million after reporting total sales of €24 million in 2015.

The company will shift its focus to wholesale and catering business. Veganz will supply vegan products to major supermarket chains including Metro and Famila.

Jan Bredack, the founder of Veganz, told Lebensmittelzeitung that the growing emergence of other vegan purveyors throughout Germany was largely responsible for Veganz downturn. “The model of the vegan supermarket outstripped itself, because of the growing supply of vegan produce,” explained Bredack.

You must be logged in to post a comment Login