German confectionery manufacturer Viba Sweets is taking over the specialist food retail chains Hussel, Arko and Eilles, the company announced on Friday.
Viba Sweets plans to maintain around 160 of the 200 shops currently operated by the three brands, including franchisees.
North German coffee retailer Arko, confectionery specialist Hussel and tea seller Eilles all belong to the Deutsche Confiserie Holding company, which declared bankruptcy in early February.
According to a report in Wirtschaftswoche magazine, around 1,200 employees worked for the three retail chains at the time.
On Friday, Viba Sweets announced plans to absorb about 600 employees in the deal.
The Arko, Hussel and Eilles chains had previously filed for bankruptcy on their own in 2021, citing the impact of the coronavirus pandemic, but were ultimately able to continue operating.
"If we succeed in turning shopping in our stores into an experience for customers, we are confident that our specialist stores will hold their own on the market and remain a valuable component of attractive city centres," the controlling shareholders of Viba Sweets, Karl Heinz Einhäuser and Holger Storch, said in a statement.
The takeover is to take place on May 1 of this year.
According to the company, Viba Sweets will grow from around 450 total employees at present to more than 1,000. The expansion is taking place in economically turbulent times, the company said, particularly in view of cost increases for important raw materials such as cocoa.
"We are aware that the joint path will be challenging," Viba Sweets said.
Viba Sweets is best-known in Germany for its Viba and Heilemann brand nougat products.
