Association of towns and municipalities warns of Galeria store closures
Following the insolvency of Signa Holding, the Association of Towns and Municipalities warns against the closure of branches of the Galeria department store chain and insists on financial aid from the federal and state governments for the realignment of city centers. "The Signa insolvency is bad news for all Galeria department store locations," CEO Gerd Landsberg told the newspapers of the Redaktionsnetzwerk Deutschland. "Whether and to what extent restructuring proceedings will lead to success is currently completely open."
This means that more than 90 Galeria locations, which were actually to be continued in the long term, are threatened with closure, Landsberg continued. For the municipalities affected, this means a further worsening of the situation. Vacancies in the city centers are increasing anyway.
In order to keep the city centers attractive and liveable, it is therefore important that the closure of the remaining Galeria locations is averted with a clear redevelopment roadmap, said Landsberg. "Galeria department stores continue to be important anchor points in many pedestrian zones." However, unprofitable locations should "not be saved again and again with taxpayers' money".
Where stores have to close, attractive re-use concepts must be developed in close cooperation with the cities and property owners, Landsberg demanded. "Retail, gastronomy, culture, but also education and housing can be sensibly combined in individual cases," he told the RND newspapers.
Cities and municipalities should also be given the opportunity to make interim use of retail properties in individual cases or to acquire them themselves. "This requires the federal and state governments to support the municipalities financially, for example by setting up an inner city fund that must be adequately financed."
Austrian entrepreneur René Benko's Signa Holding filed for insolvency on Wednesday. In Germany, the group includes the Galeria department store chain with 92 stores and around 13,800 employees. The parent company is Signa Retail Selection AG, based in Switzerland. According to the "Süddeutsche Zeitung", it has filed for creditor protection and is thus conducting its own orderly proceedings under Swiss law.
- The insolvency of Signa Holding poses a significant threat to the survival of numerous Galeria department stores, as warned by the Association of Towns and Municipalities.
- The potential closure of Galeria stores in various cities could exacerbate the issue of vacant properties in city centers, requiring creative reuse concepts to maintain their attractiveness.
- Financial aid from both federal and state governments is crucial for municipalities, allowing them to develop reuse plans for closed Galeria stores and maintain the vitality of city centers through interim uses or property acquisitions.
Source: www.ntv.de
