The last major department store group in Germany, Galeria Karstadt Kaufhof, has again applied for state aid. This was confirmed to the German Press Office from government circles. Initially, there was no information on the amount of aid requested. Galeria boss Miguel Müllenbach recently warned employees in a letter that the company was “in a threatening situation again”.
The war in Ukraine and high inflation set Galeria Karstadt Kaufhof back in its initially promising restructuring efforts.
Galeria Karstadt Kaufhof: Already 680 million euros in state aid received
It is the third time in nearly two years that the department store group has sought state aid. In early 2021 and then again in early 2022, the company applied for state aid due to the effects of the corona pandemic. The Economic Stabilization Fund (WSF) helped the traditional company in two aid actions with a total of 680 million euros.
Debates are inevitable
The group’s attempt to secure further state aid is likely to spark debate. The previous state aid to the group was controversial. Critics questioned the future viability of the department store’s business model or saw Galeria’s owner, Austrian real estate billionaire René Benko, as having a duty to help the tottering giant.
But there were also supporters of the aid packages, such as the German Trade Association (HDE), which justified its support for the second aid package by the importance of the group for the appeal of many city centers.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
