The works council of Galeria Karstadt Kaufhof considers the department store chain to be viable for the future despite the turbulence at parent company Signa.
“The fact that the core companies of the Signa Group are now insolvent means that we can free ourselves from the Signa Group and its interests,” said works council leader Jürgen Ettl to the business magazine ‘Wirtschaftswoche’ (Sunday). If a new owner is found who “has an interest, just like us, in ensuring that Galeria does well, the company is fit for the future.”
According to Ettl, Galeria can offer individual investors or a consortium a return of between 6 and 17 percent. “We can guarantee 3 percent in bad times and at least 6 percent in good times.” To do this, among other things, the rents at the Signa locations would have to be reduced to a market level.
Further job cuts at the Essen company headquarters can hardly be avoided. “It’s hard for me as a works council,” said Ettl. “I would like to keep every job. But in our situation, there shouldn’t be any prohibitions on thinking for works councils either.”
The company network of the Austrian real estate billionaire René Benko, which also includes Galeria, is faltering due to increased interest rates, construction costs and energy prices. Several parts of the group are insolvent. (dpa)