The department store group Galeria Karstadt Kaufhof does not rule out a rethinking of some of the 52 branches planned for closure – provided there are further concessions from landlords or municipalities. “Should there be any significant changes to the current prospects for the continuation of the branches, there may well be a reassessment,” said a company spokesman on Tuesday in Essen of the German Press Agency.
Even in the first insolvency proceedings in 2020, the number of branches that were closed was still reduced due to such last-minute concessions.
Takeover of individual locations by dealers is still in the room
Apparently, individual department store locations are still being taken over by other retailers. Galeria had already reported in January that several bidders had expressed interest in taking over businesses. Among them was the Dortmund fashion retail chain Aachener. A breakthrough has apparently not been achieved in the talks so far. “At the present time, no agreement could be reached with a transferee,” said the company spokesman.
Germany’s last major department store chain announced on Monday that it intends to close 52 of the 129 department stores it currently has in the course of the ongoing insolvency proceedings. The closure is to take place in two waves by the end of January next year. This will also eliminate several thousand jobs.
Insolvency plan provides for modernization
According to the plans of the department store group, the remaining 77 branches are all to be comprehensively modernized over the next three years. In the future, the group intends to focus its product range primarily on the areas of clothing, beauty care and home accessories. However, before the restart, the creditors’ meeting on March 27th in Essen must give the green light. If she rejects the insolvency plan, the company is threatened with immediate collapse.
At the end of October, Galeria had to seek rescue in protective shield insolvency proceedings for the second time in less than three years. At the time, CEO Miguel Müllenbach named the exploding energy prices and the slump in consumption in Germany as the reason for the threatening situation of the company. The General Works Council also blames management errors for this. (dpa)