Ten locations in Bavaria are also to be closed as part of the planned tough restructuring of the insolvent department store group Galeria Karstadt Kaufhof. As early as the end of June, the company wants to close the houses in Coburg, Erlangen, Munich at the main station, Nuremberg-Königstrasse, Nuremberg-Langwasser and Regensburg-Neupfarrplatz, as the management announced on Monday.
At the end of January 2024, the department stores in Bayreuth, Schweinfurt, Kempten and Rosenheim will also be closed. The group only sees a future for twelve stores in Bavaria: In addition to four locations in Munich – Marienplatz, OEZ, Rotkreuzplatz and Schwabing – these are the stores in Aschaffenburg, Augsburg, Bamberg, Landshut, Memmingen, Nuremberg Lorenzkirche, Regensburg in the Danube shopping center and Würzburg. They are to be comprehensively modernized over the next three years and the product range is to be geared more closely to local and regional needs.
The Verdi union does not want to accept the decision without objection. “We do not see this list of closures as final. We will fight for every branch and every employee,” said union secretary Jaana Hampel in Nuremberg. Nuremberg Mayor Marcus König (CSU) said that the city also did not want to accept the announced closure of two of the three branches. “It’s difficult to understand why Nuremberg in particular, with its population that has been growing for years, is on the cross-off list.” With the 370 employees “we will therefore fight for the whereabouts of all Nuremberg branches and jobs.”
Rosenheim Mayor Andreas March (CSU) criticized that Rosenheim deserved another chance with its location in the region and high purchasing power. “Against this background, the decision of the Essen headquarters is a slap in the face and incomprehensible.” But the domestic labor market is receptive enough to offer employees new sustainable jobs. He wanted to talk to the owners of the property quickly about future use.
Nationwide, 52 branches will not be continued. According to the works council, around 5,000 employees will lose their jobs, the company speaks of 4,000 employees in the branches and 300 in the Essen headquarters. You will be offered to switch to a transfer company. The state-supported company wants to continue at 77 locations nationwide and maintain 11,000 jobs.
At the end of October, Galeria Karstadt Kaufhof had to seek rescue in protective shield insolvency proceedings for the second time in less than three years. The reason for the company’s threatening situation was the exploding energy prices and the slump in consumption in Germany. It is already the second attempt to get the retail giant back on the road to success with a protective shield procedure and the associated haircut.
A first attempt, which started in 2020 during the first corona lockdown, brought only temporary relief to the company, despite the closure of around 40 branches, the loss of around 4,000 jobs and the cancellation of more than two billion euros in debt.