Merchandising industry - Six more Galeria stores spared; saved.
In the overhaul of faltering department store chain Galeria Karstadt Kaufhof, six branches totaling around 500 jobs won't be shut down. Galeria revealed this in Essen. Along with Galeria leadership, Insolvency Administrator Stefan Denkhaus has managed to maintain operations at Berlin-Spandau, Cologne (Breite Strasse), Mainz, Mannheim, Oldenburg, and Würzburg.
At first, 16 of the 92 branches were slated to shut down on August 31. Now, there are just ten. Thus, 82 branches will persist. "I suppose the list of locations to be carried on is now finalized," Denkhaus told the German Press Agency after being asked.
Around 900 jobs are set to cease due to the insolvency. Conversely, 11,900 positions will continue, mentioned the insolvency administrator's spokesman.
Insolvency Administrator: "Last-Minute Offers from Landlords"
"I'm enthusiastic that we've reached economically feasible solutions for six more branches thanks to late offers from landlords," said Denkhaus in a statement. "The employees of these six locations and the vitality of city centers will greatly benefit from this outcome. We're grateful for the dedication of city and political representatives." As a result, Galeria will preserve approximately 500 additional jobs. Insolvency Administrator Denkhaus specifically thanked the engaged representatives of cities and politics on site.
"Today is a significant day that validates our forward course," remarked Galeria CEO Olivier Van den Bossche. "We're optimistic about Galeria's future with 82 locations."
The insolvency processes are nearly finished. The creditors endorsed the insolvency administrator's restructuring plan by the end of May. A key element of the plan was the closure of establishments in locations with pricey rents. NRDC, a US investment firm, and a participatory firm owned by entrepreneur Bernd Beetz will become new owners as of August 1.
Since six branches will now continue, the following sites previously mentioned remain on the list:
In Berlin: Ringcenter, TempelhofIn North Rhine-Westphalia: Essen, WeselIn Bavaria: Augsburg, Regensburg (Neupfarrplatz)In Rhineland-Palatinate: Trier (Fleischstraße)In Baden-Württemberg: LeonbergIn Brandenburg: PotsdamIn Saxony: Chemnitz
