Arndt Geiwitz, Galeria’s chief representative, hopes that the creditors’ meeting will give the go-ahead for the restructuring of the last major German department store chain this Monday. “My hope is that the creditors will agree again this time, because the alternative is much more painful. A rejection of the insolvency plan would mean the end for the company,” said the restructuring expert from the dpa news agency. The retail group filed for bankruptcy for the second time in three years at the end of 2022. The restructuring plan provides for the closure of 47 branches. According to the Verdi union, around 5,000 employees could be affected by the closures. In addition, suppliers, landlords and other creditors should waive claims in the billions. “The rate for creditors will be in the single digits, maybe a bit lower than last time,” said Geiwitz. This means that if the bankruptcy plan is accepted, the creditors will not even see ten percent of the money that Galeria owes them. If the insolvency plan is rejected, however, they face a total loss.
Galeria – creditors vote on bankruptcy plan – economy
