Fresh money for Galeria: The department store chain is receiving a new loan from its minority shareholder Bain Capital, as the company confirmed to the German Press Agency. The interim financing is intended to help bridge the tense financial situation. The “Handelsblatt” had previously reported.
According to its own information, Galeria will receive 10 million euros. The investor Bain Capital had already granted a loan last year. “The liquidity situation shows severe fluctuations,” said managing director Tilo Hellenbock. However, he was confident that the situation would stabilize again.
Several of Galeria’s landlords recently complained that rent payments for April had not been made. Among those affected is the branch on Berlin’s Alexanderplatz, whose property belongs to Commerz Real. According to reports, Galeria also asked to defer the rent. This was initially not commented on when asked.
The department store company has now admitted that it had asked the landlords of all 83 branches for a deferment. Rent payments that would have been due in March and April were to be postponed until the fall. However, not all landlords accepted this.
According to Galeria, rent payments were initially stopped in some cases during the negotiations, but should now be made up. Some landlords who have accepted a deferral will receive the rent in the fall, plus interest. A landlord emphasized to the German Press Agency that he had not been asked by Galeria to defer payment of the rent. “There was no contact,” it said. Other companies initially did not comment.
Further branch closures possible
There has been several unrest around Galeria in the past few months. In January, CFO Christian Sailer was dismissed. No reason was given. In March, the company announced that it would renegotiate the lease agreements for eight locations that were due to expire in the medium term.
Galeria admitted that further branch closures are possible. “If it is not possible to reach a mutually acceptable solution that opens up a long-term future for all parties, there is also the possibility of closures,” the company said.
In this case, as a precautionary measure, negotiations should begin regarding a reconciliation of interests and a social plan for the affected branches. The department stores in Munich (Rotkreuzplatz), Berlin (Kurfürstendamm, Hermannplatz), Cologne (Hohe Straße, Breite Straße), Mannheim, Braunschweig and Aschaffenburg are affected.
Galeria currently operates 83 branches and employs around 12,000 people. At the beginning of 2024, the chain had to file for bankruptcy again. As a result, nine houses were closed. Galeria was then taken over by the US investment company NRDC and the entrepreneur Bernd Beetz. Together they both own more than 90 percent of the shares, with Bain Capital accounting for six percent, according to “Handelsblatt”.