Department store chain - More Signa insolvency announcements: Galeria's future unclear
The future of the department store chain Galeria Karstadt Kaufhof (GKK) remains unclear following the announced insolvency filing of important Signa companies. The company did not wish to comment on a media report on Thursday according to which GKK is already preparing for a third insolvency. This had previously been reported by the news portal "Business Insider", citing company circles. According to the report, the company is investigating whether the chain still has sufficient funds and economic strength to file for insolvency.
After several companies from the Signa retail and real estate group had filed for insolvency in recent weeks, the two most important real estate companies in the group announced insolvency proceedings on Thursday. Accordingly, Signa Prime Selection AG and Signa Development Selection AG intend to apply to the Vienna Commercial Court for the opening of restructuring proceedings under self-administration.
This could also have an impact on Galeria: Signa Prime also owns 18 department store properties of Galeria Karstadt Kaufhof. GKK itself belongs to another Signa subsidiary, Signa Retail Selection AG, which had announced that it would wind up its business in an orderly manner, which would mean the sale of GKK.
Galeria currently still operates 92 department stores. The Essen-based company currently employs around 15,500 people. At the end of 2022, Germany's last major department store group had to seek rescue for the second time in a protective shield procedure. Signa had pledged 200 million euros for the restructuring. The first 50 million will be paid out in February.
According to dpa information, several options are currently being examined at GKK. Talks are being held with several interested parties regarding a takeover of the company. Company circles are currently not ruling out the possibility that the promised 200 million euros will be paid despite the Signa insolvencies and that there could also be movement in the rental payments for the 18 Signa properties. According to dpa information, GKK currently pays around 180 million euros per year in rent to Signa. If the 200 million euros are not paid and no buyer is found, there is a risk of insolvency, although the company is currently operating in the black.
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Source: www.stern.de
