In the debate about new state aid for the stricken department store giant Galeria, the Minister of Economic Affairs of North Rhine-Westphalia Mona Neubaur spoke out in favor of the involvement of Galeria owner René Benko. “Yes, I think it’s Mr. Benko’s turn to give up capital as well,” Neubaur told the “Business Journalists’ Association” in Düsseldorf on Wednesday evening.
According to insiders, the ailing last major German department store group had submitted a new application for state aid. It was only in January that the federal government backed the company with another 220 million euros and in 2021 Galeria had agreed a loan of 460 million euros with the federal government.
‘Not a good idea to let Galeria go bankrupt’
At Galeria, future prospects should be discussed seriously, Neubaur asked. The department store giant must not become a bottomless pit. At the same time, she doesn’t think it’s a good idea to say we’re letting Galeria go bankrupt now. Retail plays a central role in city centers.
Galeria Karstadt Kaufhof is part of the Signa Holding of Austrian real estate investor Benko. It has, among other things, a real estate portfolio worth billions. The department store giant was created in 2019 from the merger of Benko’s Karstadt and Kaufhof. The group is currently feeling – like the entire retail sector – the effects of consumer confidence, which has been dampened considerably by high inflation and rising energy prices.
Big losses for two years
Galeria already made a high loss in fiscal year 2020/21. According to the annual report, management also expected the 2021/22 fiscal year, which ended at the end of September, to be in the red.
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.
