The ailing department store group Galeria Karstadt Kaufhof does not expect a decision on which of the 131 branches will continue until the beginning of next year. “It is not yet certain which stores will be closed,” said Arndt Geiwitz, Galeria’s general representative, on Thursday. “We assume that there will be clarity about this in the course of January next year.” A possible concession by the respective landlord will also play a major role in the decision on the fate of individual branches.
Galeria general representative: There are currently no specific offers
According to Geiwitz, there should be talks in the near future with various interested parties who are interested in taking over Galeria locations. “Serious interested parties can then submit concrete offers after looking at the data,” said the renovation expert. These are not currently available.
After the parent company Galeria Karstadt Kaufhof sought rescue in a protective shield procedure at the end of October, the Essen district court has now granted the application to reorganize the catering subsidiary Galeria Restaurant and the food subsidiary Galeria Markthalle in the course of insolvency proceedings in self-administration, the company reported. The reason for this is the strong economic dependency on the parent company Galeria Karstadt Kaufhof.
The district court of Essen appointed the Düsseldorf lawyer Frank Kebekus as provisional administrator, who also performs this function for the Galeria protective shield proceedings. “It is common practice for subsidiaries to also get involved in restructuring processes under insolvency law, and it often makes sense. This enables a holistic restructuring of the group of companies,” says Kebekus.
Germany’s last large department store group sought rescue in protective shield proceedings for the second time in less than three years at the end of October. According to initial announcements, the company intends to close more than 40 of its remaining 131 department stores as part of the restructuring efforts. The retail giant with its 17,000 employees is still represented in 97 German cities.
“It’s about an economically sensible and viable perspective for the concept of department stores in Germany,” said Geiwitz. The aim of all measures must be to create a viable structure under changed conditions. The owner, the Austrian real estate billionaire René Benko, have promised further, very high investments. (dpa)