Out of the 16 affected Galeria stores, six will not be shutting down.
"I'm happy that we've managed to find financially feasible solutions for six more branches thanks to late negotiations with landlords," shared Stefan Denkhaus, the administrator handling Galeria's insolvency. "Unfortunately, we can't say the same for the other locations we're closing due to economic factors."
The six spots that have seen these solutions are located in Berlin-Spandau, Cologne's Breite Strasse, Mainz, Mannheim, Oldenburg, and Würzburg. On the other hand, Galeria branches in Augsburg, Berlin-Ringcenter, Berlin-Tempelhof, Chemnitz, Essen, Leonberg, Potsdam, Regensburg's Neupfarrplatz, Trier's Fleischstraße, and Wesel will be shutting down.
The creditors approved a restructuring plan earlier in May, which was projected to result in approximately 1,400 job losses, with over 450 of those being based at Essen headquarters. The closure of these six extra locations should help save an additional 500 positions, as per Galeria. The company currently employs a total of 12,800 people.
Galeria Karstadt Kaufhof had to resort to insolvency for the third time in January. This was triggered by the failure of its Austrian parent company Signa. Back in April, it was revealed that a consortium consisting of the US-based NRDC Equity Partners and BB Capital SA, an investment firm led by 73-year-old entrepreneur Bernd Beetz, had planned to take over Galeria. The insolvency process is expected to be wrapped up by the end of July.
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Stefan Denkhaus mentioned that six Galeria stores, located in Berlin-Spandau, Cologne's Breite Strasse, Mainz, Mannheim, Oldenburg, and Würzburg, will not be closing due to financially viable solutions following negotiations with landlords. Regrettably, the Galeria branches in Augsburg, Berlin-Ringcenter, Berlin-Tempelhof, Chemnitz, Essen, Leonberg, Potsdam, Regensburg's Neupfarrplatz, Trier's Fleischstraße, and Wesel will still have to shut down due to economic factors. The insolvency process for Galeria Karstadt Kaufhof, which started in January due to its Austrian parent company Signa's failure, is estimated to end by the end of July. The administrator handling the insolvency, Stefan Denkhaus, mentioned that the closure of six more locations could help save approximately 500 jobs, contributing to Galeria's total workforce of 12,800 people located mainly in Mannheim, Berlin, and Cologne.
