2024-04-27 18:10:08
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These Galeria branches are to close
Updated April 27, 2024 – 1:15 p.mReading time: 3 min.
Three bankruptcies in three and a half years: It is now known which Galeria-Karstadt-Kaufhof branches will close next.
The ailing retail chain Galeria Karstadt Kaufhof is giving up 16 of its remaining 92 department stores. 1,400 of the 12,800 jobs are to be cut, as the German Press Agency learned from company circles on Friday.
It is now clear which branches will be closed on August 31st this year. This was announced by insolvency administrator Stefan Denkhaus on Saturday. According to “Bild”, landlords of the affected branches can approach Galeria again to negotiate lower rents if necessary. An overview:
- Augsburg
- Berlin Tempelhof
- Berlin Ringcenter
- Berlin-Spandau
- Chemnitz
- Essen
- Cologne Breite Straße
- Leonberg
- Mainz
- Mannheim
- Oldenburg
- Potsdam
- Regensburg Neupfarrplatz
- Trier Fleischstrasse
- Würzburg
- Wesel
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The district mayor of the Berlin district of Lichtenberg, Martin Schaefer (CDU), is shocked. “I am horrified by the plans to close the Lichtenberg branch and cannot understand the decision,” he says. Here you can read more about it. Potsdam’s mayor Mike Schubert (SPD) wants to discuss the consequences with city center retailers and the trade association next week and look for solutions. “There should not be a vacancy in the largest house on the street,” he said, according to a statement.
Expert: Major challenges not solved
According to Galeria, a reconciliation of interests and a social plan were concluded with the general works council on Friday. “We will do everything we can to lead our business into a successful future. We see good conditions for this, not least due to our sales development in the current financial year,” said Galeria boss Olivier Van den Bossche. The company’s headquarters are to move from Essen to the Düsseldorf Shadowstrasse branch.
Expert Johannes Berentzen from the retail consulting firm BBE was skeptical on Friday that the planned closures would be enough. With the closure of the 16 houses, the major challenges of the remaining houses and the Galeria business model have not been solved, he told the dpa. It’s about more local entrepreneurship, investments in space, in personnel and in linking the online and offline worlds. In addition, structures and processes in the central functions must be adapted. “I am very skeptical that there will be enough time and money for this mammoth task,” said the BBE managing director.
Third bankruptcy in three and a half years
The department store group filed for bankruptcy at the beginning of January. It is the third bankruptcy within three and a half years. At the time, Galeria boss Olivier Van den Bossche cited, among other things, the insolvencies of the Signa Group of the previous owner René Benko as the reason for the difficult situation. Their imbalance had an immediate impact: financial resources for the restructuring of the department store chain, which had been promised in the wake of Benko’s previous insolvency, were no longer flowing.
The agreement concluded between investors and Galeria will only come into effect if the creditors agree. Insolvency administrator Denkhaus wants to present the insolvency plan for the change of ownership by the end of April. The plan will not be legally binding until the creditors’ meeting approves it on May 28 and it is then reconfirmed by the court. Denkhaus wants to hand over the company to the new owners by the end of July.