The Limited Times

Now you can see non-English news...

After Tui and Lufthansa: Merkel's government wants to support the next group

2021-01-27T18:59:06.316Z


After Lufthansa and Tui, now Galeria Karstadt Kaufhof: Another large company is to be supported with state aid. It is also about the location of the city centers.


After Lufthansa and Tui, now Galeria Karstadt Kaufhof: Another large company is to be supported with state aid.

It is also about the location of the city centers.

  • After

    Lufthansa and Tui

    , the next German group is in distress in the Corona crisis.

  • The federal government

    now

    wants to give

    Galeria Karstadt Kaufhof a helping hand

    with up to 460 million euros

    .

  • However, the offer is tied to strict conditions and legal requirements.

Berlin / Essen - The federal government wants to support the ailing

department store group Galeria Karstadt Kaufhof

according to information from the German press agency.

This involves a stabilization measure in the form of a loan of up to

460 million euros

, as the Committee of the Economic

Stabilization Fund

decided on Wednesday.

The offer of help is now before the company for a decision.

Representatives of several ministries sit on the committee.

The Ministry of Economic Affairs and the Federal Ministry of Finance

* had previously

agreed

on the

stabilization

measure, as it was said.

Specifically, it is about a so-called subordinated loan.

The aid measure is

linked

to

extensive requirements and legal requirements

.

Merkel's government steps in: This is how jobs at Galeria Kaufhof are to be secured

The

Federal Government

*

wants to make an important contribution with the support

to secure jobs

and to bridge the current difficult situation for the company.

From their point of view, department stores also have an important anchor function for the

stabilization of inner cities as

a whole.

Angela Merkel's

* government founded the

Economic

Stabilization

Fund

(WSF) in March 2020

to support large companies with guarantees and capital aid

during the

Corona crisis

and to preserve jobs.

For example, a billion dollar

rescue package for Lufthansa

and

aid for the travel company Tui have

already been agreed

.

Corona crisis in Germany threatens to drive Galeria Kaufhof into ruin

The Corona crisis had hit the already ailing department store group Galeria Karstadt Kaufhof hard.

During the

first lockdown in April of

last year

, the group had to seek rescue in a protective shield procedure.

Only at the end of September did he complete the bankruptcy proceedings.

It was supposed to

enable

the last remaining German department store group to make

a new start

by

closing more than 40 branches

,

cutting around 4,000 jobs

and canceling more than two billion euros in debt.

Group boss Miguel Müllenbach

wrote in a letter to the employees at the time that Galeria Karstadt Kaufhof was back on the field and would turn the table of successful retailers upside down in the coming weeks and months.

Corona lockdown in Germany: Galeria Kaufhof as an important factor for city centers

But the

second lockdown

probably thwarted the plan.

The group itself is keeping a low profile when it comes to the current situation.

But the GKK general works council chairman Jürgen Ettl only warned a few days ago in an interview with the “Lebensmittel Zeitung”: “

Currently the fixed costs are consuming the reserves

.

It's easy to calculate


how long we would survive a lockdown. "

The trading giant still has almost

130 department stores

.

In many inner cities they are considered

indispensable crowd pullers

, the closing of which would also make many surrounding shops difficult.

In the video: Not only the German department store is facing problems - many companies are fighting the Corona crisis

Many other companies in Germany are also suffering massively from the economic effects of the Corona crisis.

(dpa) * Merkur.de is part of the Ippen digital network.

Source: merkur

All news articles on 2021-01-27

You may like

News/Politics 2024-02-28T07:53:13.059Z

Trends 24h

News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.