As of: 01/17/2023 3:28 p.m
Employees of the insolvent department store chain Galeria Karstadt Kaufhof are hoping to keep their jobs. Apparently more of the branches can be preserved than previously thought.
The number of future locations of the department store group Galeria Karstadt Kaufhof could remain larger than the insolvency administrator and management had promised in the past few months. The company’s management and the general works council have apparently agreed on the first cornerstones of the future branch network.
17,000 jobs affected
“The number of branches that were the focus of a closure review was significantly reduced,” the company said. However, there was no further information on this. Galeria filed for bankruptcy under self-administration at the end of October. Negotiations with the federal government about another loan from the federal government’s economic stabilization fund failed in the fall.
Insolvency administrator Arndt Geiwitz had previously announced that only a hard core of department stores would remain. The general works council had recently warned that up to 90 of the 131 branches were threatened with closure. Around 17,000 people still work at Galeria Karstadt Kaufhof.
Second bankruptcy in two years
In April 2020, the group had already filed for bankruptcy under self-administration. The company was forgiven debts of two billion euros. The process lasted until the end of September of the year, when Galeria left the protective shield again after the creditors approved the restructuring plan. In the end, 41 branches were closed and around 4,000 jobs were lost.
The fact that the further closures of department stores could be less than feared could also be related to signals from potential new financiers. “Several bidders have expressed interest in taking over branches,” Galeria said today. Discussions with potential buyers are ongoing. This is one of the reasons why it is still not certain how many of the 131 department stores could be preserved.
However, it is clear that the branches “cannot be maintained in their current structure and number,” according to the company. Since the fate of many branches has not yet been determined, management and the general works council have agreed not to comment on individual locations.
Agreement with the Aachener chain?
According to the Dortmund fashion retail chain Aachener, it is in talks with the department store chain about taking over “a large number of Galeria locations”. “Should there be takeovers, all employees of the affected branches will be offered the opportunity to keep their jobs,” the chain announced. Aachener did not comment on the question of which locations are suitable for them.
The Aachener fashion chain has only been around since the beginning of 2022. According to the industry trade journal “Textilwirtschaft”, it has so far operated seven locations nationwide, including former Galeria branches in Flensburg, Brühl and Göttingen. The chain wants to grow in the future by taking over existing textile retailers and stores.
So far, Aachener has concentrated on the areas of textiles, accessories and shoes and, according to its own statements, is “in the upper price segment”. With the takeover of Galeria locations, however, the concept is to be expanded to include other range components.