End of insolvency proceedings - Galeria shopping chain dares with 83 branches the restart
The Galeria department store chain will conclude its ongoing insolvency proceedings after nearly seven months. The Essen District Court decided on Monday to lift the insolvency proceedings as of July 31, according to the company in Essen. Starting Thursday, August 1, Galeria will operate independently again. The chain reportedly still operates 83 stores with around 12,000 employees.
Galeria to Focus on Core Competencies and Modernize Stores
CEO Olivier Van den Bossche announced that Galeria will focus on "strong product ranges to concentrate on its core competency as a department store." The local focus will be expanded to address the needs of customers on-site. Additionally, there will be store modernizations for an "attractive shopping atmosphere and an ideal shopping experience."
Galeria Karstadt Kaufhof filed for insolvency for the third time in fewer than three years in January. The department store chain encountered difficulties due to the insolvency of the Austrian parent company Signa. In April, the consortium consisting of the US investment firm NRDC Equity Partners and the investment firm BB Kapital SA of the 73-year-old entrepreneur Bernd Beetz took over Galeria.
Insolvency administrator Stefan Denkhaus stated on Monday that new shareholders were found during the seven months of the proceedings and the cost structure was reduced to an "appropriate level." Galeria, as a medium-sized enterprise, now has a "good economic starting position and begins with a liquidity of several digits in the nine-figure range into the future." He wishes the company with the new owners a grace period of 300 days "to implement the future concept step by step."
Following the court's decision, Galeria's department store chain gallery will no longer be under insolvency proceedings, resuming its operations independently from August 1. With the conclusion of insolvency proceedings, Galeria aims to concentrate on its core competencies and modernize its stores for an improved shopping experience.
