Signa insolvency without consequences for Galeria for the time being
On Wednesday, company circles at department store group Galeria Karstadt Kaufhof were initially cautious about the insolvency of Signa Holding GmbH. "The situation has no immediate negative impact on Galeria at the moment. We will calmly await the outcome of this orderly process," they said. Jürgen Ettl, Chairman of the General Works Council at Galeria, did not wish to comment on the issue for the time being when asked.
Signa Holding GmbH, owned by Austrian real estate and retail entrepreneur René Benko, announced insolvency proceedings this Wednesday. The holding company will apply to the Vienna Commercial Court for the opening of restructuring proceedings under self-administration, the Signa Group announced.
Signa's real estate and retail group consists of a complex network of several hundred individual companies. This also includes Galeria Karstadt Kaufhof. Signa's difficulties could therefore also have a negative impact on the financially ailing department store group.
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. In March 2023, the creditors' meeting approved the insolvency plan and cleared the way for the restructuring. Signa had pledged 200 million euros for this. According to reports, the first 50 million will flow in February.
The legally binding restructuring plan provided for the closure of around a third of the 129 stores. Some of the locations have already been closed this year, with almost 20 more closing their doors in January 2024, including branches in Berlin, Bielefeld, Darmstadt, Heidelberg, Stuttgart and Wuppertal. According to the company, 92 stores will ultimately remain.
Despite Signa's financial struggles affecting its retail group, which includes Galeria Karstadt Kaufhof, the insolvency of Signa Holding GmbH currently has no direct impact on Galeria's operations. Galeria continues to sell various consumer goods through its retail outlets in the retail trade sector.
Source: www.dpa.com
