Several bidders have expressed interest in acquiring stores from the Galeria Kaufhof chain. According to the company, it is not yet clear which branches will continue to operate and which will be closed. 17,000 employees are affected by the cuts.
The department store chain belongs to the Signa Holding of the Tyrolean real estate investor Rene Benko. By the end of October 2022, she had sought rescue in a protective shield proceeding for the second time in less than three years. At the time, Miguel Müllenbach, Galeria’s boss, said the branches “needed to be reduced by at least a third”. That would be at least 40 of the total of 131 department stores. It is now heard that twice as many houses could be hit.
“Due to ongoing discussions with landlords and potential buyers, it is currently unclear which branches will continue to operate or will be closed,” Germany’s Galeria said on Tuesday. However, the number of branches to be closed is significantly lower than initially assumed. About 17,000 people work at Galeria Kaufstadt.
Fashion retailer Aachener would keep employees
The Dortmund-based company announced that the Aachen fashion retailer would offer employees of affected stores the option of keeping their jobs if a takeover were to take place. Representatives say they are in talks with the department store chain. The latter, in turn, has not commented on the stakeholders.
The fashion chain has only been around since early 2022 and operates seven branches across Germany, including former Galeria branches in Flensburg, Brühl and Göttingen. Aachener has so far concentrated on textiles, accessories and shoes and says it is in the higher price segment. However, the concept is being expanded with the acquisition of Galeria branches.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
