This marks a significant step towards securing the long-term future of sites, jobs and local supply in the region. The agreement is subject to approval under merger control law. The investor agreement is to be implemented through an insolvency plan, which must then be approved by FLM’s creditors. However, the creditors’ committee appointed by the court has already given the project the green light.

The plan is for LEH-Allgäu GmbH and the REWE Group to each operate a significant proportion of the total of 72 sites independently in future.

Through this agreement, the parties involved aim to create a long-term outlook for the sites concerned. The aim is to preserve a long-established medium-sized company, to strengthen local supply and jobs in the Allgäu and southern Germany, and to continue to offer customers a reliable range of products and services in the future. The agreement is also intended to lay the foundations for the further development of the sites.

“By signing this agreement, we have taken an important step towards securing a long-term future in the Allgäu. The planned takeover is intended to strengthen local supply in the region and open up new development opportunities for the sites concerned. Our aim is to offer local people, employees and, consequently, the region a reliable future. This is precisely where the strength of our co-operative business model lies. It is intended that the existing employment contracts of staff at the stores to be operated by the REWE Group in future will remain in force unchanged,” says Peter Maly, member of the REWE Management board.

“The investment agreement is an important step towards securing the future of the Feneberg sites in the Allgäu and southern Germany. As entrepreneurs with decades of experience in the food retail sector, our aim is to create a long-term and reliable solution that strengthens local food supply, safeguards jobs and offers security to the local community. It is planned that the existing employment contracts for staff at the stores, which will in future be operated by LEH Allgäu GmbH, will remain in force. “Our aim is to turn a challenging situation into a stable and sustainable future for these sites,” said Alexander Pade, managing partner of LEH-Allgäu GmbH.

The Allgäu is one of the most important retail regions in southern Germany, and Feneberg has been a key player in local supply here for decades. The planned development is intended to secure the long-term supply of goods for local residents and support the region’s economic development. It also represents a long-term vision and a clear regional commitment.

The agreement remains subject to approval by the relevant authorities.