Next bankruptcy – Signa subsidiary Galeria has filed for bankruptcy

Despite the bankruptcy, boss Olivier van den Bossche was confident: “Galeria’s operational success is burdened by the preconditions of the old ownership structure. We explicitly see today as a liberation.” The bankruptcies of the Signa Group would cause enormous damage to the Galeria, hinder current business and seriously limit development opportunities through high rents and expensive services.

40 branches closed
It is the group’s third bankruptcy in less than four years. He currently operates 92 homes and has more than 15,000 employees. After the previous bankruptcy, the German department store chain from Essen had to close about forty branches, the last eighteen of which will close later this month.

In late 2022, the company sought rescue in a protective shield proceeding, and in March creditors finally agreed to the insolvency plan. The parent company Signa, which is currently also fighting on many fronts, had pledged 200 million euros for the renovation, which should continue until 2025. The first 50 million euros could be available in February.

Not an isolated case
In recent weeks, several companies from the trading and real estate group of Tyrolean entrepreneur René Benko have filed for bankruptcy, including Signa Retail Selection AG in the real estate sector.

The Galeria is Germany’s last major department store group, offering clothing, jewelry, cosmetics, as well as kitchen and electrical appliances and stationery.