On Monday, regular insolvency proceedings for the ailing department store chain Galeria Karstadt Kaufhof were opened at the Essen District Court. Discussions are already underway with a possible new owner. There were four bidders, two of which are now under negotiation.
This was announced by lawyer Stefan Denkhaus, who was provisional administrator and is now curator of the company Signa Group. “Both interested parties have extensive experience in German retail and also have the necessary resources for the upcoming investment.” He did not mention the names of the possible investors.
Denkhaus wants to complete the sale of Galeria in April. However, the final decision is made by the creditors. The insolvency plan will be voted on on May 28. Denkhaus wants to reduce rents. Depending on the industry, he aims for a sales rent of seven to eleven percent. “It makes no sense to continue to operate a branch with a rental burden of more than 30 percent,” says Denkhaus.
Currently 92 branches
There are currently 92 branches. It is unclear how many are left. According to Denkhaus, at least 60 will be taken over. Some of the 12,800 employees therefore have to fear for their jobs. “We try to maintain the best possible branch network and really fight for every branch,” says the lawyer.
Galeria filed for bankruptcy in Essen at the beginning of January. It is the third bankruptcy within three and a half years. During this period, the number of branches of the department store chain has halved.
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.
