The ailing German department store chain Galeria Karstadt Kaufhof of the Tyrolean investor René Benko wants to restructure in a so-called protective shield insolvency procedure. The group filed a corresponding petition with the court in Essen. At the same time, it was announced that the company will close numerous branches. The Verdi union is fighting for jobs at Germany’s last major department store chain, workers “wondering where the owner is,” they say.
The company belongs to Signa Holding Benkos and is insolvent for the second time in a short time. “For us now, it’s about getting as many jobs as possible,” Stefanie Nutzberger, Verdi’s federal board member, said Tuesday evening.
At least a third of the branches are closing
Given the fall in consumer and energy prices, the retail giant had sought rescue in a protective shield lawsuit, announcing that it would close at least a third of its remaining 131 department stores. Layoffs for operational reasons are inevitable.
Nutzberger called for greater efforts from Galeria owner Benko to save the company. “Our colleagues in the 131 department stores are wondering where the owner is in this existentially extremely threatening situation for 17,400 people and their families.” More money has to go into the business now. “There are clear expectations from the owner.”
“Suggestions were ignored”
In addition, the group management must present a viable concept for the future. “The employees have made many concrete suggestions for a successful future that have not been listened to by management,” said Nutzberger. Verdi asked the management to enter into negotiations immediately.
The bankruptcy trustee of the Austrian billionaire’s crisis chain has announced significant cutbacks. Of the now 131 department stores, only a hard core remains, Arndt Geiwitz told the German television channel WDR on Tuesday. Which will be decided in three months at the latest. Galeria filed for bankruptcy under self-government on Monday.
Renovation contract unilaterally terminated
At the beginning of October, the department store giant unilaterally canceled the collective restructuring agreement concluded with the Verdi union. Galeria boss Miguel Müllenbach painted a dramatic picture at the time in a letter to the employees at the time. “We can only continue on our path successfully if we manage to restructure Galeria’s financing and inject new, fresh capital into the business,” says the manager.
Source: Krone
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