Media Markt closes the Italian site of Redcoon

It could have come to the epic, at least as we have known in recent years, the adventure of Redcoon, a German company acquired in 2011 by the Media Markt group (which is part of the Metro AG Group, the third largest distribution group) , Which in Italy controls the Media World chain.

The coexistence between the online store and the physical stores of the chain has been problematic since then, with retailers who have never seen the presence of strong internal competition. Currently the Italian website Redcoon.it, as well as the eBay shop, are closed and the visible message on the Italian home page leaves little room for the imagination:

Following are email addresses and the address of the registered office of Redcoon Italia to which you can contact to receive clarification. The story has led to the closure of the Italian site for the time being, which in the last year had relied solely on Italian mediaworld media. Meanwhile, in Germany and Poland, the site is still accessible even though it may weigh a number of strategic choices made to try to save the situation.

Last April, the closing of Redcoon’s online stores was announced in Austria, Spain, Portugal and the Benelux countries. The reasons given by Media Markt were essentially related to the losses sustained by Redcoon in 2016 when, in Germany alone, turnover fell from 403 to 338 million euros (compared to 2015), with losses of 55 million euros.

Finally, it seems that Media Markt intends to cancel the purchase in 2011, asking for $ 300 million to Reiner Heckel, Johannes Majdic and Jürgen Bartsch, former owners of the online store. The reasons for the withdrawal would be in the alleged violation of antitrust laws but it will not be easy for the German company to substantiate its reasons.

In fact, during the years of partnership, the Media Markt group has gained considerable know-how in its online store, and this will weigh when parties have to reach an agreement.

 

 

Carey

Carey

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