Galeria insolvency administrator Stefan Denkhaus is accelerating the restructuring of the ailing department store group Galeria Karstadt Kaufhof. “We want to present an insolvency plan by the end of April. After an examination by the Essen district court, the creditors’ meeting is scheduled to make a decision on May 28th,” Denkhaus told the German Press Agency. A core element of this restructuring plan is the sale of the company to an investor. We are currently negotiating with two possible investors.
The insolvency administrator said in the Tagesschau on Tuesday: “Our goal is to certify and then communicate in the next week which of the two candidates has been awarded the contract.”
It is still not known which potential buyers are still in the running. “Both interested parties have extensive experience in German retail and also have the funds required for the upcoming investment,” Denkhaus said last week.
If the meeting of creditors accepts the insolvency plan, it must be reconfirmed by the insolvency court. The court can then cancel the insolvency proceedings.
At the beginning of January, Galeria filed for insolvency with the Essen district court. The court opened the insolvency proceedings on Monday. It is the third bankruptcy within three and a half years.
There are currently 92 branches. How many there will be in the future is still unclear. According to Denkhaus, it will involve taking over at least “60 plus X” branches. “We don’t yet know how big this X is,” he said last week. The company, which previously belonged to the Signa Group, currently employs around 12,800 people. The amount of rent is considered to be crucial for the preservation of the respective branches.
