The insolvency of Galeria Karstadt Kaufhof is threatening even more locations than previously thought. According to a report by Lebensmittelzeitung, up to 90 of the 131 department stores could close as part of the restructuring. At the end of October, Galeria boss Miguel Müllenbach said the branch network had to be “reduced by at least a third”. The number that is now circulating corresponds to almost two thirds of the shops.
The Lebensmittelzeitung refers to an email from the general works council to the employees. Accordingly, it emerged from discussions with the employer side that up to 90 branches could close. In addition, according to the letter, the branches that are to continue are threatened with staff cuts of up to 30 percent. The company did not want to comment on these figures when asked by Lebensmittelzeitung. A spokesman for the insolvency administrator only said that nothing had been decided yet, that negotiations were ongoing.
Galeria currently has 17,000 employees and operates 131 department stores in 97 German cities. According to the works council email, not only the staff in the houses affected by closures but also employees in the service center and in facility management have to fear for their jobs. The works council therefore sharply criticized the plans.
Galeria announced at the end of October that it would restructure itself in a protective shield process. to want. It is the second bankruptcy in less than two years. In 2020, the group of Austrian real estate billionaire René Benko had already closed around 40 branches and cut 4,000 jobs. But despite millions of euros in corona aid from the state, the company continues to stumble.
The boss of the stationery retailer buero.de, Markus Schön, came into play as the savior for some of the department stores. Schön has announced that he intends to take over 47 branches. Smaller locations in particular are attractive to him, said Schön recently in an interview with the star. He wants to take over the employees and continue to offer a department store range. Whether Schön will have a chance or how things will continue with Galeria is currently still open.
