Another six Galeria department stores will be rescued.
As negotiations were winding down, insolvency administrators and management reached an agreement to maintain six more Galeria locations. This totals 82 stores that will stay operational. There seems to be no bright future for the remaining stores, however.
In the process of restructuring the struggling German department store chain Galeria Karstadt Kaufhof, six shops with roughly 500 staff will not be shut down. The Galeria in Essen has made this announcement. Insolvency administrator Stefan Denkhaus and Galeria administration managed to preserve the outlets in Berlin-Spandau, Cologne (Breite Strasse), Mainz, Mannheim, Oldenburg, and Würzburg.
Initially, 16 of the 92 total stores were listed to close by August 31. Now, that number has dropped to ten. So, 82 stores will survive. "I presume that this list of continued stores is now complete," said Denkhaus. As a result, around 900 jobs will be eliminated. Approximately 11,900 jobs will be maintained, a representative for the insolvency administrator stated.
"I'm pleased that we've found economically viable solutions for six more stores because of late offers from landlords," remarked Denkhaus in a statement. "Both for the impacted employees and employees of the six stores, as well as for lively city centers, we are relieved to have reached an agreement."
Galeria CEO Olivier Van den Bossche commented, "We're thrilled to have come to financially sensible solutions for six more stores thanks to late bargains from landlords. This benefits both the workers and the six stores involved, as well as keeping vibrant city centers active."
The latest insolvency proceedings are nearing completion. Creditors agreed to the administrator's restructuring plan in late May. Part of the plan involved closing stores with excessive rents. The new owners will be the US investment company NRDC and a stake from Bernd Beetz as of August 1.
Following the decision to continue with six stores, these locations are still slated for closure:
- In Berlin: Ringcenter, Tempelhof
- In North Rhine-Westphalia: Essen, Wesel
- In Bavaria: Augsburg, Regensburg (Neupfarrplatz)
- In Rhineland-Palatinate: Trier (Fleischstraße)
- In Baden-Württemberg: Leonberg
- In Brandenburg: Potsdam
- In Saxony: Chemnitz
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The agreement maintained the insolvency of Galeria Karstadt Kaufhof in six additional locations, including Berlin-Spandau and Cologne. Despite the preservation of these stores, the future looks uncertain for the remaining department stores.
