Austrian court extends detention of ex-Kika/Leiner CEO amid fraud probe

A Vienna court has prolonged the pre-trial detention of former Kika/Leiner managing director Hermann Wieser, with the order remaining in force until at least 14 October. The Economic and Corruption Public Prosecutor’s Office alleges that Wieser took advantage of a post-flood discount campaign to collect advance payments from customers while the retailer was already cash-strapped, leaving many without furniture or refunds.

Prosecutors say thousands of consumers were harmed and that Wieser may have diverted company assets shortly before the insolvency filing to hinder creditor recovery. His counsel maintains his innocence, describing him as a dedicated manager who fought for the business until the end and demanding his release. The case follows Kika/Leiner’s collapse after a series of insolvencies and the sale of its real-estate assets by the bankrupt Signa to Supernova and the hand-over of operations to Wieser earlier this year.