The Galeria Karstadt Kaufhof group can imagine that part of the 52 announced branches will not have to close after all. If landlords or municipalities make further concessions, the situation could be reassessed, a company spokesperson said Tuesday. That wouldn’t be the first time.
In the 2020 insolvency proceedings, fewer branches were closed than planned due to last-minute concessions. That should also be a possibility at this point. “Should there be significant changes in the current outlook of the branches for continuation, there may be a reassessment,” a company spokesperson said in Essen on Tuesday. In addition, there is room for individual department store locations to be taken over by other retailers. Representatives of the Galeria had already expressed interest in acquiring companies in January. Among them was the fashion store chain Aachener.
No breakthrough in conversations
So far, apparently, there has been no breakthrough in these talks. “At this time, no agreement could be reached with a buyer,” said the company’s spokesperson. As reported, Germany’s last major department store chain announced Monday that it plans to close 52 of the 129 stores it currently has. This should happen in two waves by the end of January 2024. Several thousand people would lose their jobs as a result.
The remaining 77 branches will then be modernized over the next three years. In the future, the group mainly wants to offer clothing, beauty care and home accessories. This still requires the green light from creditors on March 27. If the insolvency plan is rejected, the company faces immediate collapse.
Rising energy prices
At the end of October, the Galeria had already filed for insolvency proceedings with a protective shield for the second time in less than three years. The reason given at the time was the exploding energy prices and less consumption in Germany. The works council, on the other hand, also speaks of administrative errors.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
