Galeria Kaufhof insolvent again: These branches still have a future
Created: 03/12/2022 04:46
By: Dominik Jahn
It is the second insolvency procedure for Galeria Kaufhof within two years.
The company has now spoken about its plans and explained what requirements a branch will need in the future.
Already in June 2020 the end threatened.
The department store chain Galeria Karstadt Kaufhof had to close 62 of the 172 branches across Germany, as
Now the next bankruptcy shock for all employees.
And this time it could not only hit the branch in Heilbronn.
As the company had announced, they want to close more than 40 of the remaining 131 department stores.
Company boss Miguel Müllenbach had announced the drastic step to
Frankfurter Allgemeine Zeitung .
In view of the slump in consumption and rising energy prices, there is no longer an alternative to bankruptcy.
Müllenbach: "Permanent state loans cannot be the solution here, but a clear cut towards economically viable structures is required."
Plans for Galeria Kaufhof after bankruptcy – Heilbronn location questionable
But what happens next?
Which Kaufhof branches have to close?
Will the Heilbronn site escape permanent closure again?
What plans do those responsible for company boss Müllenbach have in the drawer.
When asked by
, Galeria Karstadt Kaufhof GmbH explained how it would proceed.
The foundation for a realignment after the insolvency proceedings should therefore be the already redesigned businesses.
It says: "The redesign of the first 10 or so Galeria branches as part of the newly implemented Galeria 2.0 strategy since October 2022 has shown proven success and must therefore be continued after fine adjustment." But it also means that those who do not fit into the new concept will closed.
After the bankruptcy: These Galeria Kaufhof branches will be closed
Those responsible for Galeria make no secret of the consequences of the realignment either: "In order to make this possible on the basis of the new economic framework conditions, the existing branch portfolio must be significantly reduced and it will be necessary to part with stores that are no longer available due to these new conditions are more profitable to operate.”
Unsuitable Kaufhof branches are sorted out in order to be able to finance the renovation of the few remaining stores.
The communication states that this will enable "further modernization measures for the sustainable core".
According to experts, the future looks bleak for the company.
Even Aldi branches would therefore have more customers.
Galeria Kaufhof: Those responsible rely on insolvency for realignment
And Galeria Kaufhof has also once again told our editorial team about the waiver of further state aid.
According to this, in the course of the dialogue with the Economic Stabilization Fund (WSF) and the responsible federal ministries, a conscious decision was made against "
additional interest-bearing external funds"
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Protective Shield Proceedings
Protective Shield Proceedings
According to the definition, the protective shield procedure is a special type of procedure under German insolvency law.
It combines provisional self-administration with the aim of submitting an insolvency plan at an early stage in order to facilitate the restructuring of companies.
Such funds would
"put too much of a financial burden on Galeria and would limit the possibility of being able to continue the Galeria 2.0 transformation process that has begun at an accelerated pace to the extent that is absolutely necessary"
In a protective shield procedure, it would be possible for Kaufhof to present the short-term optimization of the branch portfolio well and
"the financial resources can be invested in the modernization process in a targeted manner"
Where is Galeria Kaufhof next?
The company has not yet announced locations
Those responsible at Galeria Kaufhof see the department store chain as having a future.
According to his own statement,
"the business model with the necessary modernization of the branches is viable and will be able to be successful on the market free of unindebted burdens"
Those responsible are still silent about which branches at Galeria Kaufhof would like to go into the future.
The company only said to echo24.de
“At this point in time, we cannot make any statements about individual locations, which are now the subject of a very careful individual case study and analysis.”
Union verdi criticizes the approach at Galeria Kaufhof
The United Services Union (verdi) criticizes the approach at Galeria Kaufhof.
In an official statement, the union said: “Galeria boss Miguel Müllenbach has threatened to close at least 40 of the department stores that still exist in 97 German cities.
This leads to an acute threat to the more than 17,000 jobs in the company.”
And it goes on to say: "
Our colleagues in the 131 department stores are wondering where the owner is in this extremely existentially threatening situation for 17,400 people and their families," explained ver.di federal board member Stefanie Nutzberger.
“Our colleagues have invested millions of euros in Galeria Karstadt Kaufhof for years.
The anger and disappointment among our colleagues on site is great.”
Galeria Kaufhof closures: These branches were already on the list in 2020
Hamburg (shopping center Alster)
Nuremberg Lorenz Church