Status: 03/13/2023 2:38 p.m
Galeria Karstadt Kaufhof has been in crisis for years – there are now severe cuts in the ongoing insolvency proceedings: According to the general works council, the group wants to close more than 50 branches. Apparently 5,000 employees will lose their jobs.
Germany’s last major department store group, Galeria Karstadt Kaufhof, intends to close 52 of the remaining 129 department stores, according to the general works council. This was announced by the company’s employee representatives.
“All in all, well over 5,000 employees will lose their jobs,” reported the company’s employee representatives. “This is a pitch-black day,” emphasized the works council.
The background: Galeria Karstadt Kaufhof had to seek rescue in protective shield insolvency proceedings for the second time in less than three years at the end of October.
Energy prices and slack consumption
In a letter to employees at the time, CEO Miguel Müllenbach cited the exploding energy prices and the slump in consumption in Germany as the reason for the company’s threatening situation.
In addition, the group, which belongs to the multi-billion dollar Signa Holding of the Austrian investor Rene Benko, who had merged Karstadt and Kaufhof, was struggling with home-made problems. Two years ago, Galeria Karstadt Kaufhof had already closed a good 40 of the 172 branches at the time during the insolvency proceedings, with around 5,000 employees losing their jobs.
Galeria itself has not yet commented on this. The company’s board of directors was supposed to meet in the afternoon.