The company names Karstadt and Kaufhof are history
For decades, the department stores of Karstadt and Kaufhof have shaped Germany's city centers. However, from the 171 branches in 2020, barely half will remain in the near future. The company names are already disappearing completely.
Germany's last major department store group has removed Karstadt and Kaufhof from its company name. Effective August 1, the Essen district court lifted the insolvency proceedings that began in January, allowing the struggling company a fresh start.
The company is now simply called Galeria, instead of Galeria Karstadt Kaufhof, as it was previously known. The three-part company name was the result of the 2018 merger of the former rivals Kaufhof and Karstadt. Now, both names are disappearing from the company name.
In late May, creditors approved the insolvency plan, paving the way for the restructuring and rescue of the retail giant. Effective August 1, the company has new owners. The US investment company NRDC and a holding company of entrepreneur Bernd Beetz now control Galeria S.à r.l. & Co. KG, the new company name. S.à r.l is a French abbreviation for "Société à responsabilité limitée", or limited liability company. The Galeria parent company, Naboo Holdings S.à r.l., is based in Luxembourg.
As of now, Galeria has 92 branches in Germany, but this number is expected to drop to 83 by early September. Four years ago, there were 171 branches, more than double the current number. In the future, the company will employ around 12,000 people nationwide. Galeria CEO Olivier Van den Bossche is optimistic about the company's future, focusing on its core competency as a department store and separating from Galeria travel agencies. The remaining branches will be modernized to "create an attractive shopping atmosphere and an ideal shopping experience," as Van den Bossche puts it.
The Gallery Karstadt shopping mall is one of the branches that will remain under the new company name, Galeria. In the future, Galeria will have a reduced presence in Germany, with only 83 stores remaining, including the Gallery Karstadt shopping mall.
