Galeria Karstadt Kaufhof to Close 16 Stores in Bankruptcy Marks Third Within Three and a Half Years
Galeria Karstadt Kaufhof, a financially troubled department store group, announced that it will close 16 of its 92 stores on August 31 this year. This marks the third bankruptcy within three and a half years for the company, which filed for bankruptcy at the beginning of January. Insolvency administrator Stefan Denkhaus made the announcement on Saturday.
The insolvency administrator stated that three stores are particularly affected by the closures, with a total of 16 stores set to close. Out of approximately 12,800 employees, 11,400 are expected to keep their jobs while 1,400 will be laid off. A reconciliation of interests and a social plan were concluded with the general works council on Friday, according to Galeria’s CEO Olivier Van den Bossche.
Galeria is hopeful for a successful future and has plans to relocate its headquarters from Essen to the Düsseldorf Schadowstrasse branch. A consortium consisting of the US investment company NRDC and entrepreneur Bernd Beetz’s company BB Kapital SA has expressed interest in taking over the department store chain. However, the agreement is contingent on approval from creditors.
Insolvency administrator Denkhaus aims to present the insolvency plan for the change of ownership by the end of April. The plan will only become legally binding after approval by creditors at a meeting on May 28 and confirmation by the court. If all goes according to plan, Denkhaus hopes to hand over the company to the new owners by the end of July.
