The Christmas business has long since begun in the city center. In the Galeria Kaufhof on Marienplatz, a large display at the entrance advertises “30 percent discount”, a man hands out vouchers for special offers, and Christmas carols are playing in the department store. A woman hangs clothes neatly on hangers. She is not employed directly by Galeria, but by a temporary employment agency. She learned about the bankruptcy of the Austrian real estate giant and about possible consequences for the Kaufhof am Marienplatz. “It’s not closing, it’s one of the few branches that are being kept,” she says confidently. “I like it here.”
In another department, a saleswoman reports: “It’s not a big issue among our colleagues. We didn’t get any information at all.” Normally such topics would be discussed in the break room, but especially in the Advent business, people don’t take breaks together but go individually because so many customers need advice. “I was already at the branch at the main train station,” she says and raises her shoulders. “We knew about the bankruptcy, but the fact that the Karstadt was closed came completely spontaneously for us.” But she is not afraid of her current job and is looking around. “There’s just too much going on.”
“It’s already an issue,” says another saleswoman. She found out about the bankruptcy from the Internet. “Nothing came from above.” The mood is tense, she says in a relaxed tone, as if she were referring to the men’s socks in the first basement. “But it’s not the first time.”
Austrian entrepreneur René Benko’s Signa Holding GmbH had announced insolvency proceedings. According to its own information, the holding company applied for the opening of restructuring proceedings under self-administration on Wednesday. Galeria is part of the Swiss subsidiary Signa Retail Selection AG, which applied for bankruptcy protection in court on Wednesday. On Thursday it was also announced that the sporting goods retailer Sport-Scheck, which also belongs to Signa Holding, wanted to file for bankruptcy.
Department stores have come under increasing pressure in recent years, says Bernd Ohlmann from the retail association. “But the locations we have now work.” It would be a “bitter blow” for the city centers if the Galeria Karstadt Kaufhof branches had to close. However, he does not want to participate in speculation about what will happen to the branches in Munich and Bavaria. “I hope that the dark clouds will clear away quickly.” From the retail association’s point of view, it is important that the department store chain’s locations continue to exist – both for employees and for the city centers. A closure would also raise the question of the future use of the large properties, says Ohlmann.
The insolvency of Signa Holding is “bad news” for inner cities, says Wolfgang Fischer, managing director of the Munich association City-Partner. The Galeria branch on Marienplatz is still one of the most important “magnet businesses” in the city center, and the effects of a closure would be “hard to imagine,” says Fischer. The fact that Sport-Scheck also had to file for bankruptcy was a “setback”. Even though the company is now owned by Signa Retail, it is still an old Munich company that is committed to preserving the city center.
Dominik Datz is union secretary at Verdi and is responsible for retail employees. According to him, there is no new status on the future of the Galeria Karstadt Kaufhof branches. Only when concrete, initial results in Signa’s insolvency proceedings are available can a serious statement about the situation be made.
“I’m staying positive,” said a Sport-Scheck employee on Thursday afternoon. It’s not the end yet. He was surprised by the news of the bankruptcy. “All employees were informed this morning and we first have to take up the new development.” He hadn’t expected the bad news. His colleague feels differently. “I’ve been at Sport-Scheck for more than twenty years. Nothing surprises me anymore.” However, the mood in the company has not changed so far. “The solidarity is there, even among the leaders,” she says. “I’m calm about it.”