Agreement in insolvency proceedings
Six more Galeria department stores saved
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Shortly before the negotiations were concluded, the insolvency administrator and management agreed to keep six more Galeria locations. This means that 82 branches remain open. But there is probably no hope for the rest.
During the restructuring of the ailing department store chain Galeria Karstadt Kaufhof, six branches with a total of around 500 jobs will not be closed. This was announced by Galeria in Essen. The insolvency administrator Stefan Denkhaus, together with the Galeria management, managed to continue the locations in Berlin-Spandau, Cologne (Breite Straße), Mainz, Mannheim, Oldenburg and Würzburg.
Of the 92 branches currently remaining, 16 were originally scheduled to close on August 31. Now there are ten. This means that 82 branches will remain. “I assume that the continuation list is now complete,” said Denkhaus. In total, around 900 jobs will be lost as a result of the insolvency. Around 11,900 jobs will be retained, explained a spokesperson for the insolvency administrator.
“I am pleased that we have reached economically viable solutions for a further six branches based on subsequent offers from the landlords,” said Denkhaus, according to a statement. “We are particularly pleased that we have reached an agreement, especially for the affected employees of the six branches and with a view to lively city centers.”
“We look to the future with optimism”
This means that around 500 more jobs have been retained at Galeria. Denkhaus expressly thanked the committed representatives of the cities and local politicians. “Today is a special day for all of us, which strengthens us on our way forward,” explained Galeria boss Olivier Van den Bossche. “We are optimistic about the future of Galeria with 82 locations.”
The latest insolvency proceedings are nearing completion. The creditors approved the insolvency administrator's restructuring plan at the end of May. An important part of the plan was the closure of branches at locations with excessively high rents. The new owners are to be the US investment company NRDC and a holding company owned by the entrepreneur Bernd Beetz on August 1st.
Now that six branches have been continued, the following locations are still on the cancellation list published last week:
- In Berlin: Ringcenter, Tempelhof
- In North Rhine-Westphalia: Essen, Wesel
- In Bavaria: Augsburg, Regensburg (Neupfarrplatz)
- In Rhineland-Palatinate: Trier (Fleischstrasse)
- In Baden-Württemberg: Leonberg
- In Brandenburg: Potsdam
- In Saxony: Chemnitz
