Fraud allegations against former Kika/Leiner CEO

Following the insolvency of Austrian furniture chain Kika/Leiner, the Austrian Public Prosecutor's Office for Economic Crimes and Corruption (WKStA) is now investigating a former managing director of the company on suspicion of fraud. According to consistent reports from Austrian media, including ORF and Der Standard, the suspect was arrested on 28 August and has been held in pre-trial detention since 30 August; the court cited risk of flight, collusion and reoffending. He denies the allegations.

At the centre of the case is a "flood relief" promotion advertised in September 2024, offering a 20 per cent discount on furniture purchases, which is alleged to have exploited the plight of flood victims. Although the company was already insolvent from the end of January 2024 onwards, according to investigators, deposits and gift vouchers reportedly continued to be sold even though delivery was no longer possible. At least 4,700 customers are said to have been affected. The total alleged damage amounts to around €16.1 million, according to ORF, comprising roughly €15 million from the deposit fraud and a further €1.1 million from assets allegedly moved shortly before insolvency proceedings began.

Kika/Leiner filed for insolvency for the second time within months in November 2024 and was wound up by the end of that year.

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