2024-05-02 05:52:31
Galeria Karstadt Kaufhof has new investors and they are cleaning up: at some locations it is already clear what will happen next. Hundreds of employees are still worried.
Relocation of the corporate headquarters, layoffs of employees, closure of 16 branches: After the third bankruptcy in just four years and the takeover by new investors, one thing is certain: things are going on with the Galeria Karstadt Kaufhof department store chain, but not as before.
t-online provides an overview of what is known about the planned changes.
Food loses twice as much
For some branches there are already ideas about how things could continue. Food in particular is hard hit by Galeria’s decision. The chain is the largest tenant in Limbecker Platz and occupies an area of around 19,000 square meters, which extends over several floors. However, the news of the closure of the location was no longer a surprise for the mall’s operators, as center manager Anastasios Meliopoulus explained in a radio interview.
The center management has been working on an alternative solution for the retail space for around three years. “We are in very advanced discussions with four potential tenants. This would involve major renovation work that would bring the property forward in the next few years,” confirms Meliopoulus on Radio Essen. By dividing the area, there could be space for “three to four larger concepts” in the future. A new tenant for the entire area is a rather unlikely option. It was not revealed who the potential tenants were.
Still hope for Augsburg
Unlike in Essen, the closure of the branch in Augsburg comes as a surprise to many of those affected. In Bavaria, Economics Minister Aiwanger wants to fight “for every location”. But he only sees opportunities for Augsburg, he told Bayerischer Rundfunk.
In Chemnitz, too, the owner of the Galeria property, CCC Center Management, was surprised by the plans to close it. Managing director Andreas Uhlig told MDR: “From our point of view, the house in Chemnitz had a very good, economically viable concept from a commercial point of view with the new contract that we concluded with the Galeria.” But he is already working on a plan B. Given the good location directly on the market, it won’t be too difficult. “I’ll only talk about it once the contracts have been signed by all sides,” said Uhlig. The planned catering facilities on the ground floor of the building are being retained. A solution should be in place by next year at the latest, because then Chemnitz will be the cultural capital and an empty building in the middle of the city wouldn’t look too good.
Some experts expect that additional locations will be abandoned in addition to the 16 known closures. “I think 20 branches is a realistic number. Anything beyond that is a concession to the insolvency administrator so that you can get the contract and continue to operate the stores for a certain period of time,” said Jörg Funder, professor of corporate management in retail at the Worms University. The trading consultancy BBE writes that 50 to 60 houses are currently considered profitable.
The situation on the labor market gives hope
The past few months have been marked by uncertainty for employees. Most recently it was said that 1,400 of the 12,800 jobs would be cut. Jobs should also be saved in administration. Around 450 jobs will be lost at this point. The remaining positions will be distributed among the branches that will be closed. A reconciliation of interests and a social plan were agreed with the general works council.