The Federal Employment Agency (BA) will pay insolvency money to employees of the Galeria Karstadt Kaufhof department store chain if the insolvency proceedings filed on Tuesday are opened.
“After intensive consultations with the company and a detailed examination of the requirements, the BA has determined that the employees can receive insolvency money if bankruptcy is declared again,” the authority said in a statement on Tuesday.
Insolvency money is paid retroactively for up to three months after the opening of insolvency proceedings, usually in the amount of the last net income. The employees do not have to do anything at the moment, according to the statement.
The department store chain Galeria Karstadt Kaufhof filed for bankruptcy again at the Essen district court on Tuesday. Galeria, currently part of the Signa Group, is looking for a new owner. Discussions with potential investors have already begun, it said. The aim is to continue Galeria.
After the previous bankruptcy, the department store group had to close around 40 branches. The last 18 of them will close later this month. Galeria currently operates 92 department stores and, according to its own information, employs more than 15,000 people.(dpa)