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Difficult new beginning: Galeria Karstadt Kaufhof branch in Berlin
Photo: MICHELE TANTUSSI / REUTERS
Germany's last large department store group Galeria Karstadt Kaufhof (GKK) can take off.
The Essen district court lifted the protective shield proceedings for the company and its subsidiaries Karstadt Sport, Karstadt Feinkost, Le Buffet and Dinea on Wednesday, according to a judicial spokesman.
The creditors had previously approved the insolvency plans drawn up by the company's management and thus waived claims amounting to more than two billion euros.
For thousands of employees, however, the realignment means that they will lose their jobs.
Because the redevelopment plans provide for the closure of more than 40 department stores.
Almost 130 department stores and more than 16,000 jobs will be retained.
Until recently, there was a struggle to save department stores through concessions from landlords, which in some cases succeeded.
GKK boss Miguel Müllenbach is now looking to the future with optimism.
In an interview with "Bild am Sonntag" he said a few days ago: "Galeria Karstadt Kaufhof will be debt-free from October 1st and has a strong capital base. It has been a tough week for all of us, especially for the employees. But now look we forward. "
Focus on local and regional conditions of the locations
Now it is important that the new strategy of the group management actually works.
Müllenbach announced that the department store giant wants to gear its range more to the local and regional conditions of the locations and also to become much more digital.
"We will massively expand our online trade," he said.
In the past, GKK was far too slow and old-fashioned in this area.
Galeria Karstadt Kaufhof had to seek rescue in protective shield proceedings at the beginning of April in the course of the corona crisis.
The already ailing group had got into a serious crisis due to the corona-related temporary closure of all branches.
Now the company is to become the "networked marketplace of the future" according to the plans of the management.
However, the tasks along the way are considerable.
Because Galeria Karstadt Kaufhof is not only suffering from the corona crisis.
Even before the pandemic, the triumph of online trading and the number of visitors to the city centers, which have been falling for years, were troubling the group.
The department store giant itself does not even make five percent of its sales on the Internet.
There is a lot of catching up to do in this important growth market.
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