Status: 14.10.2022 1:55 p.m
Galeria Karstadt Kaufhof is not over the mountain: the last large department store group in the country is apparently applying for further state aid. How much is still unknown.
Germany’s last major department store group, Galeria Karstadt Kaufhof, has again applied for state aid. The dpa reports and refers to government circles. There was initially no information on the amount of the requested aid.
“Again in a threatening situation”
Galeria boss Miguel Müllenbach recently warned in a letter to employees that the company was “again in a threatening situation”. The war in the Ukraine and high inflation set Galeria Karstadt Kaufhof back in its initially promising restructuring efforts.
It is the third time in almost two years that the department store group wants to resort to state aid. At the beginning of 2021 and then again at the beginning of 2022, the company asked for state support because of the effects of the corona pandemic. The Economic Stabilization Fund (WSF) helped the traditional company in two aid campaigns with a total of 680 million euros.
Programmed new discussions
The group’s attempt to secure further state aid is likely to trigger discussions. The previous state aid for the group was controversial. Critics doubted the future viability of the department store business model or saw the Galeria owner, the Austrian real estate billionaire René Benko, as having a duty to help the tottering giant.
But there were also supporters of the aid packages, such as the German Trade Association (HDE), which justified its support for the second aid package with the importance of the group for the attraction of many city centers.