Creditors accept Galeria's insolvency proposal; administrator feels relieved.
Galeria Karstadt Kaufhof's bankruptcy plan involves shutting down branches and cutting jobs. The court has already given its approval to the bankruptcy plan, which will become legally binding in two weeks.
Karstadt Kaufhof, a retail group, filed for bankruptcy in January, making it their third bankruptcy in a few years. In April, an American investment company called NRDC Equity Partners along with entrepreneur Bernd Beetz revealed their intentions to take over Karstadt Kaufhof's department store chain.
As part of the takeover process, Karstadt Kaufhof plans to close 16 of its 92 stores. This will result in the loss of around 1,400 jobs, which could predominantly come from their central office located in Essen.
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- Stefan Denkhaus, as the administrator of Galeria Karstadt Kaufhof, expressed his satisfaction after creditors accepted the insolvency plan.
- The insolvency plan, which involves closing some branches and reducing jobs, received approval from the court and will become legally binding in two weeks.
- The Galeria Kaufhof department store chain, a part of Karstadt Kaufhof, is also included in the bankruptcy plan.
- Despite the NRDC Equity Partners and Bernd Beetz's intention to acquire Karstadt Kaufhof's department store chain, the bankruptcy plan will still result in the closure of 16 stores, leading to the loss of around 1,400 jobs, predominantly from their central office in Essen.
- The creditor's acceptance of the insolvency plan marks a significant step for the retail group, which has filed for bankruptcy thrice in a few years, and will likely change the landscape of the department store chain in the near future.
Source: www.stern.de
