Insolvency: René Benko Galeria Karstadt Kaufhof wants to get rid of branches and employees. Investor Haselsteiner and advisor Gusenbauer taciturn.
Just in time for Halloween, the management of Galeria Karstadt Kaufhof showed its true colors: The German department store group, which is part of the business network of the Austrian department store juggler René Benko, is once again heading for insolvency court and wants to cut off branches and employees by through protective shield procedures. According to the management, the branch network must be “reduced by at least one third”. Galeria currently operates 131 department stores in 97 cities with 17,400 employees.
Already in 2020, shortly after the outbreak of the corona pandemic, Benko’s major department store plans were hit hard. At that time, 40 branches and 4,000 jobs were cut in insolvency proceedings. Creditors had to waive claims of about two billion euros and, according to the Handelsblatt, should get back about 100 million from ‘owner Benko’, ‘corresponding to a quota of only five percent’. Since 2021, Galeria alone has raised 680 million euros in state aid.
where is the owner?
Now the pressure on the owner is increasing. According to ARD, German trade unionist Stefanie Nutzberger sent clear words to Benko: “Our colleagues in the 131 department stores are wondering where the owner is in this extremely existentially threatening situation for 17,400 people and their families.”
In the summer Benko calmly sailed in his 62-meter yacht “RoMa” in the emerald green waters of Sardinia, now it gets more uncomfortable: from November 8 he faces court in the big corruption trial of the former Viennese Green politician Christoph Chorherr. The trial is scheduled for twelve days. Not only does the department store juggler himself currently have his hands full keeping his balls in the air, but other rather boisterous Benko comrades are also silent: after all, NEOS financier Hans-Peter Haselsteiner is a major investor in Benko and ex-SPÖ Chancellor Alfred. Gusenbauer was his advisor from the start.
“Sinking more and more into the swamp”
The “Focus” recently noted in a major article on “Ösigarch Benko” that he had “seen better days”: “The former real estate star is sinking more and more into the mire of bribery, tax evasion and illegal donations. The list will be released in the coming weeks. likely to be even longer. The prosecutor recently searched his premises.”
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.
