René Benko’s bankrupt department store giant, Galeria, has demanded “commitment and housing” from the landlords. The group wanted to talk about this, it said. It should be clear in January which of the 131 department stores must close.
“It is not yet clear which houses will be closed,” Galeria auditor Arndt Geiwitz said on Thursday. Talks will also be held with the landlords of the individual branches, from whom the group demands “dedication and accommodation”. The management, the general manager and the trustee have already spoken with suppliers and service providers.
Regular operation secured
Both regular business operations and the supply of goods would work. Preparations for the important Christmas business have been completed, says Galeria boss Miguel Müllenbach.
Triple digit million loss
Galeria Karstadt Kaufhof is suffering from rising energy prices and falling sales figures. Apart from that, the group has been under pressure for years from competition from online retailers from Amazon to Zalando. The company had recorded a loss of EUR 622 million in fiscal year 2020/21 and also expected a loss of EUR 3 million for 2021/22.
A “mass rebuilding of the department stores and a significant reduction of the branch structure and the implementation of a modern department store concept” are now on the agenda. Galeria had filed a protective shield lawsuit. The subsidiaries in the gastronomy and food sector are also being restructured in-house.
Source: Krone
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