As reported, the group Galeria Karstadt Kaufhof wants to close almost half of its branches. Now there would be a first success in the talks with the fashion store chain Aachener. The company says it wants to take over several branches and make an offer to the affected staff to come and work for the company.
There is currently no contractual arrangement with Galeria, but mutually signed contracts with landlords, fashion manager Friedrich-Wilhelm Göbel said on Wednesday. These would go into effect once Galeria announces what hasn’t happened yet. Göbel promised that “all employees in the affected sites would have the opportunity to work for us. Without exception.”
Galeria is still covered
The Galeria, which belongs to billionaire Tyrolean investor Rene Benko, was still relatively covered. “An agreement with interested parties to take over branches could not be concluded. Any subsequent leases are a matter between the landlord and any subsequent tenants. Galeria cannot comment on this,” said a spokesman for the company. According to its works council, the German department store group wants to close 52 of the remaining 129 department stores nationwide.
It is not yet clear how many branches will be added to the Aachener fashion retail chain. Göbel spoke of ten, “it could also be 25.” The areas must continue to be served. Aachener mainly sells clothing, handbags and jewellery. Toys, stationery, household textiles and household items will also be available in the new stores. Individual contents of Galeria, such as large electrical appliances or confectionery, may no longer be listed. According to Göbel, partners could take over catering and food.
What you wouldn’t do today, “we just don’t do that anymore,” they said. To date, Aachener has seven branches in five German states.
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.
