Insolvency expert Manfred Hunkemöller believes it is possible that the seriously ailing department store group Galeria Karstadt Kaufhof (GKK) can be saved again.
“I am sure that Galeria, managed correctly, can be successful again. Then the department store format has a chance,” said Hunkemöller to the German Press Agency. “The new management has done a lot right recently to restructure the company. They are unlucky that the shareholder is not fulfilling his obligations.”
GKK filed for bankruptcy on Tuesday for the third time in less than four years. The last insolvency proceedings were only lifted at the end of May 2023. In the course of this, Signa Holding, which is currently the owner of Galeria, pledged 200 million euros for the renovation. The first 50 million should reportedly flow in February 2024. However, it is now uncertain whether the money will still come from Signa Holding, which is also insolvent.
According to insolvency expert Hunkemöller, Galeria is now in trouble as a result. “This tilts the balance sheet. Although business has developed well, the company continues to make losses and excessive indebtedness is increasing.”(dpa)