According to reports in Lebensmittelzeitung, Signa, the Austrian conglomerate and owner of the ailing department store chain Galeria Karstadt Kaufhof, wants to invest 200 million euros in the renovation of the department store chain. This amount was already mentioned in January. At that time it was said that Signa was ready to provide the necessary 200 million euros if the insolvency plan was approved. This is now the case: Last Wednesday, the district court in Essen confirmed the insolvency plan of the department store group. The group has thus cleared an important hurdle for the restructuring.
Now it is said that half of these 200 million euros should flow as a company loan. Critics see it as confirmation that Signa boss René Benko is not doing enough to save the group. The situation at Galeria is still critical: many branches are to be closed or downsized. There is currently talk of 55 houses, although in some cases the last word has probably not yet been spoken. Major job cuts are also planned at headquarters.
However, the negotiations with Verdi are still problematic. A date for negotiations with the union is scheduled for Friday, but an agreement is not likely. The company had already announced weeks ago that there was no “leeway for additional financial burdens” and therefore no return to the collective wage agreement. However, the union demands exactly that, because higher salaries are essential in view of the increased cost of living.
According to statements by Arndt Geiwitz, the group’s general representative, the aim is for the insolvency proceedings to be completed at the beginning of June. In three to four years, the group wants to be in the black again.