Insolvency shock: Galeria closes nine branches and fights for the future!

The fashion industry in Germany continues to face considerable challenges, and this is clearly evident in the bankruptcies of several companies, including Hallhuber, Madeleine and Peter Hahn. Galeria Karstadt Kaufhof, now only called Galeria, has as one of the most prominent examples to have filed for bankruptcy for the third time within a few years. On July 31, 2024, the bankruptcy proceedings were successfully completed after the company submitted an bankruptcy application at the district court in Essen in January 2024.

Galeria is now under the new owner consortium, which consists of the family office by Bernd Beetz and NRDC Equity Partners. Galeria acts independently again from August 1, 2024. The closure of 16 branches was originally planned, after all, it will be nine that finally close their doors.

closures and effects

The affected branches, all of which by August 31, 2024 at the latest, are:
- Augsburg
- Berlin Ring Center
-Berlin-Tempelhof
- Chemnitz
- Food
- Leonberg
- Regensburg Neupfarrplatz
- Trier Fleischstrasse
- Wesel

After the closings, 83 Galeria locations remain in Germany. These current bankruptcies are the result of financial problems from the parent company Signa, which Galeria saved in a protective shield procedure at the end of 2022. In March 2023, the assembly of creditors approved the bankruptcy plan, whereby 200 million euros were provided for the renovation of Galeria.

As the Tagesschau , several locations have already closed permanently. Nine branches did not survive bankruptcy, which results in numerous job losses. The official day of closure of the affected branches falls on August 31; However, many shops have already completed their sales. For example, the branch in Augsburg closed last Saturday in terms of 80 employees. The Galeria department store in Chemnitz also closed two days earlier than planned, as was the branch in Essen, the company's headquarters.

The closures primarily affect locations with high rents. Insolvency administrator Steffen Denkhaus was able to negotiate new rental conditions with the landlords. In Potsdam, for example, an economically sustainable solution was found with which around 100 employees could keep their workplace. Despite the hundreds of decreasing positions, around 12,000 jobs could be preserved. In addition, the headquarters will be moved from Galeria to Düsseldorf from 2025, while the location in Essen will be abandoned. The company administration is also to be drastically slorn and the brands Karstadt and Kaufhof are deleted from the name of the department store chain.