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German Federal States — News — Retail trade — Tegel — SPD — North Rhine-Westphalia — Location — Tempelhofer Damm — europe — Kurfürstendamm — Alexanderplatz — Franziska Giffey — Lichtenberg — Insolvency — Baden-Württemberg — Rhineland-Palatinate — future — Hermannplatz — Galeria — Bavaria — Germany — Karstadt — Department store chain — Insolvencies — Lower Saxony — Berlin — GALERIA Kaufhof

Galeria's presence in Berlin-Spandau will be maintained.

Initially, three out of eight Galeria-Karstadt-Kaufhof outlets in Berlin were scheduled to shut down. However, it has been determined that the Spandau site will remain open, leaving just two department stores to close.

,   and  Ann Bradley
3 min read
The headquarters of the Galeria department store group.
The headquarters of the Galeria department store group.

Commerce concerned with the sale of items to consumers. - Galeria's presence in Berlin-Spandau will be maintained.

In the process of reorganizing the floundering Galeria Karstadt Kaufhof department store chain, the branch at Berlin-Spandau will stay open. Galeria shared this news on Friday in Essen, confirming that 75 employees will remain. This brings the total number of Galeria stores in Berlin to six. These, in addition to Spandau, consist of those at Alexanderplatz, Schlossstraße, Tegel, Kurfürstendamm, and Hermannplatz. It's probable that the stores at Ringcenter in Lichtenberg and Tempelhofer Damm will shut down.

Berlin's Senate's Economics Minister, Franziska Giffey (SPD), expressed her joy that Galeria will persist in Spandau. "Through the efforts we've made over the past few weeks and the numerous conversations with the owner, the Bavarian Insurance Chamber, the insolvency administrator, the new investors, the management, the trade association, and the district, we've achieved this result."

It is known that the store of the future needs to evolve. "This concerns novel ideas for meeting spaces, featuring a mix of enticing propositions for youth, food and entertainment, cultural experiences, and customer services."

From the beginning, 16 of the 92 Galeria stores in Germany were projected to shut after the company's insolvency and the takeover by new investors on August 31. Now it's been disclosed that six establishments with around 500 jobs are to keep running, including Berlin-Spandau. However, the store at Potsdam is set to close. Across Germany, 82 stores will stay operating, with 10 shutting down. The redundancies from this process are estimated to be 900, while around 11,900 jobs will be maintained, according to the insolvency administrator.

The recent management crisis at Galeria Karstadt Kaufhof - which wasn't their first - is approaching its endgame. The creditors had supported the restructuring proposal of the insolvency administrator by the end of May. A key element of the plan was the closures of stores in areas with high rents. The anticipated new owners are the US investment company NRDC and a stake owned by entrepreneur Bernd Beetz as of August 1.

Giffey showed confidence that the new owners will cooperate with staff to forge the essential modifications. The Senate will participate alongside the districts in this process. "Regarding the two sites at the Ringcenter in Lichtenberg and at Tempelhofer Damm, where Galeria will no longer endure, we'll expediently devise solutions in collaboration with the districts and in continuous dialogue with the owners to devise new use plans, avert vacancies, and aid the employees."

Read also:

  1. Despite the insolvencies faced by the Department store chain Karstadt, their store located in Berlin-Spandau will continue to operate in the retail trade sector.
  2. The presence of Galeria in Tegel, along with Alexanderplatz, Schlossstraße, Kurfürstendamm, and Hermannplatz, makes Berlin home to six Galeria stores.
  3. The Senate of North Rhine-Westphalia, specifically Economics Minister Franziska Giffey (SPD), expressed her satisfaction about Galeria's persistence in Spandau.
  4. The insolvency administrator and the new investors, NRDC, and Bernd Beetz, are expected to cooperate with the staff to implement necessary modifications in the store at Spandau.
  5. The future of the retail sector requires novel ideas, such as meeting spaces, youth engagement, food and entertainment, cultural experiences, and customer services.
  6. The closure of the store at Potsdam is impending, while stores in Berlin-Spandau, Schlossstraße, Tegel, Kurfürstendamm, Alexanderplatz, and Hermannplatz will continue their retail trade operations.
  7. The Bundesland (state) of Bavaria, alongside Rhineland-Palatinate and Lower Saxony, has a significant stake in the department store scene in Germany.
  8. The insolvency administrator disclosed that six establishments with around 500 jobs will be kept running, while 82 stores across Germany will continue their retail trade activities.
  9. Lichtenberg and Tempelhofer Damm, where Galeria will exit the retail trade scene, require swift solutions to avoid vacancies and avert negative impacts on employees.
  10. Berlin, Germany, is home to a diverse retail trade landscape, with renowned locations such as Tempelhofer Damm and Kurfürstendamm.
  11. Giffey expressed her confidence that the new owners will contribute positively to Berlin's retail trade sector, collaborating with the Senate and districts in the process.
  12. The insolvencies of Galeria Karstadt Kaufhof impacted across Germany, affecting regions like North Rhine-Westphalia, Hesse, and Baden-Württemberg, and regions like Hamburg and Bavaria in the south.

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