Schwarz Group requests hefty EU loan

German retailer Schwarz Group – parent of the multinational chains Lidl discount and Kaufland hypermarkets – is likely to receive hefty €100mn loan from the European Development bank ERBD. The money wil be used for building the Kaufland chain in Romania. The german magazine ‘Der Spiegel’ reports this today.

The news caused commotion in Germany. Especially local trade unions responded with anger as they reproach Schwarz Group discount subsidiary Lidl with bad practices when it comes to human resource management. Recently Lidl was accused of breaking employment legislation in Poland.

Originally a final decision on granting the loan was to be taken last January 23, but that decision has been postponed indefinitely. According to the ERBD this has nothing to do with the protests, as the delay is due to Schwarz Group still having to complete parts of the loan request.