After the announced bankruptcy filing of important Signa companies, the future of the department store chain Galeria Karstadt Kaufhof (GKK) remains unclear. The company did not want to comment on a media report on Thursday that GKK was already preparing for a third bankruptcy. This was previously reported by the news portal “Business Insider”, citing corporate circles. Accordingly, it is being investigated whether the chain still has enough resources and economic strength to go bankrupt.
After several companies from the Signa trading and real estate group filed for bankruptcy in recent weeks, the group’s two most important real estate companies announced insolvency proceedings on Thursday. Accordingly, Signa Prime Selection AG and Signa Development Selection AG want to apply to the Vienna Commercial Court to open restructuring proceedings under self-administration.
Impact on Galeria?
This could also have an impact on Galeria: Signa Prime also includes 18 Galeria Karstadt Kaufhof department store properties. GKK itself belongs to another Signa subsidiary, Signa Retail Selection AG, which had announced that it would wind up its business in an orderly manner, which would mean selling GKK.
Galeria currently operates 92 department stores. The company, based in Essen, currently employs around 15,500 people. Germany’s last large department store group had to seek rescue for the second time in protective shield proceedings at the end of 2022. Signa had pledged 200 million euros for the renovation. The first 50 million should flow in February.
According to dpa information, several options are currently being examined at GKK. Discussions about taking over the company are being held with several interested parties. Corporate circles are currently not ruling out the possibility that the promised 200 million euros will be paid despite the Signa insolvencies and that there could still be some movement in the rental payments for the 18 Signa properties. According to dpa information, GKK currently pays around 180 million euros per year in rent to Signa. If the 200 million euros do not flow and no buyer is found, there is a risk of insolvency, although the company is currently in the black operationally. (dpa)