Sudden Resignations Rock Lidl’s German Parent: Reports

A series of high-profile executive departures have rocked the Schwarz Group, the German retailing giant that owns the Lidl chain, reports out of Germany have indicated.

On April 2, Jesper Hojer resigned as CEO of Lidl, effective immediately, reports said. His departure comes less than three weeks after Patrick Kaudewitz, CEO of Schwarz’s supermarket chain Kaufland, also resigned abruptly.

Hojer, a native of Denmark, had served in Neckarsulm, Germany as Lidl’s CEO for two years. In this role he was the highest ranking executive across the entire company, which operates more than 10,000 discount stores in 29 countries. Lidl's newly installed U.S. chairman, Roman Heini, reported to him, sources said.

According to reports, Hojer resigned to spend more time with his family. Ignazio Paterno, a deputy purchasing director at the company and a former CEO of Lidl’s Italy division, has reportedly been tapped as a provisional leader.

In the meantime, Schwarz Group CEO Klaus Gehrig has temporarily taken control of the Kaufland chain while a replacement for Kaudewitz is sought.

Gehrig is said to be the demanding confidant of the Schwarz Group’s owner, Dieter Schwarz, who reportedly is Germany’s richest man. Gehrig reportedly praised the outgoing Hojer, but some reports suggested he was involved in conflict at Kaufland. Lidl has seen considerable management turnover in recent years. The U.S., for example, has seen three CEOs and as many board chairmen installed to oversee them, since word of its stateside expansion first emerged in 2015. Hojer succeeded Sven Seidel in 2017 after Seidel reportedly resigned in conflict with Gehrig.

One source, who spoke confidentially to WGB, said Gehrig was given to impulsive and at times “irrational” decisions that given his power, could have far-reaching effects including further management changes.

“Lidl and Kaufland both have problems, but are still clanking on thanks to the essential efficiency of the original system and a solid phalanx of middle management,” the source said.

Lidl is in the midst of a U.S. expansion and recently installed Heini, who was working at Lidl’s German headquarters.

A spokesperson for Lidl in the U.S. was not immediately available for comment.