The Limited Times

Now you can see non-English news...

Galeria Karstadt Kaufhof: Public prosecutor's office is investigating because of the delay in bankruptcy

2021-01-28T14:04:49.517Z


The federal government offered Galeria Karstadt Kaufhof a further 460 million euros corona loan this week. Meanwhile, the management is in the sights of the public prosecutor.


Icon: enlarge

Galeria Karstadt Kaufhof at Munich's Stachus

Photo: Sven Simon / imago images

Galeria Karstadt Kaufhof (GKK) has not just been in crisis since the corona pandemic.

But the closings due to the spread of the epidemic hit Germany's most famous department store chain hard.

In March 2020, GKK took refuge in protective shield proceedings, which were concluded in autumn.

Allegedly renovated.

But now the public prosecutor's office in Essen has started investigations against members of the company's management for delaying bankruptcy, as the prosecution announced.

The procedure goes back to the criminal complaint of a private person, said a spokeswoman.

The public prosecutor's office had been dealing with the proceedings since the beginning of December, but the accused had not yet been approached.

You are at the beginning.

Group is examining legal steps

According to the »Süddeutscher Zeitung«, GKK is said to have been insolvent in January 2020 and not in March 2020.

At the beginning of April, the company filed for bankruptcy on its own.

Several cases of allegedly unpaid social security contributions and allegedly negotiated settlement offers are said to indicate this.

A confirmation for this information from the newspaper report is not yet available.

According to SPIEGEL information, Galeria Karstadt Kaufhof is rather considering legal action against the medium.

There is nothing to be said about the accusation of delaying bankruptcy, the investigations by the public prosecutor's office are merely preliminary investigations, according to GKK.

According to the public prosecutor's office, there are only preliminary investigations in practice with people who enjoy immunity - however, the initial suspicion has yet to be confirmed.

In addition: Galeria Karstadt Kaufhof is still in a difficult situation.

In mid-January, DER SPIEGEL revealed that GKK was negotiating a state loan with the federal government.

In the meantime, there is apparently largely agreement: The ailing department store group should receive 460 million euros in tax money because the federal government considers it to be systemically relevant for the inner cities.

However, there are conditions.

The bankruptcy went hand in hand with a waiver of over two billion euros for the creditors of the department store chain, which had been ailing for years.

Icon: The mirror

apr / sbo / AFP

Source: spiegel

All business articles on 2021-01-28

You may like

Trends 24h

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.