The Potsdam Galeria store will not be shutting down as previously thought.
Hallelujah for about 100 workers at Galeria's store in Potsdam! They can now heave a sigh of relief as their branch will not be shutting down. Just recently, six other locations were given a lifeline. Nonetheless, nine stores are still at risk of closure.
Essen-based Galeria Karstadt Kaufhof has announced that the Potsdam store will remain open as part of the insolvency proceedings and with the new investors. This means that only 9 out of the 92 stores will be closing.
Stefan Denkhaus, the insolvency administrator along with the Galeria management, struck a deal that they stated could work financially for the Potsdam branch. This deal saved the store and the jobs of around 100 employees there. Seems like local political support from Potsdam also came into play.
The number of locations scheduled to close has been further reduced. In the beginning, 16 stores were feared to be on the chopping block. But with the recent developments, only 9 will actually be shutting their doors. Berlin-Spandau, Cologne (Breite Strasse), Mainz, Mannheim, Oldenburg, and Würzburg were among the six stores that were saved. The initial insolvency plan assumed the loss of roughly 1,400 jobs, 450 of which were in the Essen head office, moving to Düsseldorf. However, thanks to recent developments, 600 jobs will be preserved, including the 100 in Potsdam. Galeria Karstadt Kaufhof currently employs about 12,800 people.
The company filed for insolvency for the third time in January. The chain faced financial troubles due to the insolvency of its Austrian parent company, Signa. In April, they revealed that a consortium comprising of the US investment company NRDC Equity Partners and the European participation company BB Capital SA, headed by the 73-year-old entrepreneur Bernd Beetz, would be taking over Galeria. The insolvency proceedings are scheduled to be resolved by the end of July.
Point to ponder: Galeria Karstadt Kaufhof is on its third round of insolvency—does this mean good business was done? No! The company fell into dire straits post-collapse of its Austrian parent company Signa. Yet, the chain has managed to find new investors who seem ready to take on the challenge. Seems like light at the end of the tunnel!
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Despite the financial struggles faced by Galeria Karstadt Kaufhof due to its Austrian parent company's insolvency, the Potsdam store has been granted a reprieve. Thanks to the new investors, NRDC Equity Partners and BB Capital SA, led by Bernd Beetz, the Potsdam branch will continue operations, saving the jobs of around 100 employees.
In the context of Galeria Karstadt Kaufhof's ongoing insolvency proceedings, the Potsdam store's survival is a testament to the company's ability to attract new investors and navigate challenging financial circumstances.
