Traditional Roth store in Salzgitter closes: a loss for the city!

Traditional Roth store in Salzgitter closes: a loss for the city!

In Salzgitter, a traditional chapter will be closed at the end of the year. The long-known Roth company, founded in 1955 by F. Walter Roth, will close its two stores on December 31, 2023. Originally started as an iron wholesaler, the business has developed further over the years. Later entering the plumbing industry and opening the “Sportetage” sports store in 1983, Roth has taken on a permanent place in the local community. But now the company is forced to make these difficult decisions due to the economic unviability of large investments, as news38.de reports.

The economic consequences of the corona pandemic have left their mark. The loss of the ski service, which previously made an important contribution to sales, was a particularly severe setback due to the lack of skilled workers. In addition, the partner companies' expectations of large volumes of goods were difficult to meet. This situation has caused great regret not only among the owners, but also among employees and loyal customers.

Succession and closures in medium-sized businesses

The closure of Roth is not an isolated case. According to studies, more than 300,000 businesses in Germany could close by 2028. The reason for this is often the lack of succession among older entrepreneurs. By the end of 2025, 231,000 closures are expected, which is 67,500 more than last year. This development is worrying many sectors, especially in German medium-sized businesses, which have been characterized by uncertainty over the last three years, as tz.de reports.

While entrepreneurs are on average 54 years old and almost 40% are over 60, around 43,000 companies are at risk of throwing in the towel without a successor. Contrary to the founding of new companies, not enough people are interested in taking over existing companies. Business consultant Tim Richter warns that many could be forced to liquidate their businesses if no buyers can be found.

The future of medium-sized businesses

The last few years have been marked by unforeseeable challenges for German medium-sized businesses, from the corona pandemic to the effects of the war in Ukraine. Resource bottlenecks, problems in supply chains and rising energy prices are just some of the challenges that companies face. Despite this difficult situation, a forecast shows encouraging signs of a possible economic recovery, but succession planning remains a central issue. Between 2018 and 2022, around 150,000 companies were already aiming for a handover, and forecasts indicate that around 190,000 companies will have to initiate succession planning by 2026, as nachaufnahmekontor.de has found.

The closure of Roth is therefore an exemplary example within a much larger trend in German medium-sized businesses. The challenges posed by age structures and the need for successors will continue to shape the entrepreneurial landscape in the coming years. Whether in Salzgitter or elsewhere, the future of medium-sized businesses depends crucially on how successfully the companies can arrange their succession.