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Karstadt threatens bankruptcy: Many branches should close - thousands of employees fear for jobs

2020-06-03T13:30:21.393Z

Due to the Corona crisis, around 80 branches of Karstadt Kaufhof GmbH are to be closed nationwide. There are 19 stores in Hesse - around 3,000 employees are worried.



Due to the Corona crisis, around 80 branches of Karstadt Kaufhof GmbH are to be closed nationwide. There are 19 stores in Hesse - around 3,000 employees are worried.

  • The Galeria Kaufhof, Karstadt GmbH threatened because of the Corona * -Crisis bankruptcy
  • Up to 80 branches of a total of 170 could be closed nationwide
  • Employees at the 19 branches in Hessen are also worried about their jobs

Hessen / Frankfurt - The long-stricken company  Galeria Karstadt Kaufhof GmbH threatens bankruptcy. At the beginning of April, the department store group, which was already struggling with the red numbers, sought rescue in a protective shield procedure after the store closures ordered because of the Corona crisis . A preliminary stage of bankruptcy proceedings, in which the debtor remains in control of his company.

For many employees, this news was a shock. Because almost every second department store is threatened with closure. Nationwide there are currently around 30,000 employees in the 170 branches. In Hessen there are around 3,000 employees in a total of 19 branches. Among them in Frankfurt, Limburg, Gießen, Darmstadt and Kassel. Around 80 branches nationwide could be closed. Initial information about the proposed closings, including in Hesse, should come in the next few days.

Galeria Karstadt Kaufhof threatens bankruptcy: branches in Hesse are also threatened with closure

There were demonstrations in many cities in Hesse on Friday (May 29, 2020). In Gießen, employees of Galeria Kaufhof Karstadt distributed "red hearts for Karstadt" on the Seltersweg shopping street, as the Gießener Allgemeine * reported. There were tears of emotion in their eyes because the campaign under the motto "We fight together for Karstadt" brought together 32,000 signatures. 

There was even a declaration of solidarity for Karstadt in Gießen from the diocese of Mainz. The Verdi trade union had organized a works meeting in Kassel. 99 black balloons went up there. Firstly in memory of the corona dead, but it should also be a symbolic act. "We commemorate the large number of retail employees who are threatened by lower wages and job losses," said Verdi Nordhessen's trade secretary , Manuel Sauer, HR.

Galeria Kaufhof Karstadt employees fear for their jobs: Verdi demands state aid

In the struggle to save the Galeria Karstadt Kaufhof department store chain , the Verdi union is calling for state intervention. "It is now time for political and financial support for employees through politics in the municipalities, municipalities as well as state governments and the federal government," said Verdi negotiator Orhan Akman on Tuesday after a meeting of the collective agreement for the department store group in Essen on Tuesday. Support is also needed "in the form of state aid," said Akman. The German airline Lufthansa had just recently concluded negotiations with the federal government on a state rescue package. The group will not have to repay the nine billion euro loan until 2023, but must give up take-off and landing rights in Munich and Frankfurt. 

Hildegard Ritter works at the #Galeria #Karstadt #Kaufhof and is a volunteer at @_verdi. Together with her and many other colleagues in #trade, we as a # union are fighting together against clear cutting in the department stores! #verdi: https://t.co/lNUcOHHNiy pic.twitter.com/36pd6PqDQZ

- ver.di Westphalia (@verdi_Westfalen) May 30, 2020

The Corona crisis had put the department store chain Galeria Kaufhof Karstadt in an extremely difficult situation. "We anticipate a billion loss in sales this year," said General Manager Arndt Geiwitz. The group can therefore only survive through hard cuts. By the end of June it should be clear who will make which contributions to the restructuring and an insolvency plan will then be drawn up, which the various creditor groups will vote on in July.

svw (with dpa)

The popular running shoe chain Runners Point closes all branches in Germany - including six in Hesse. Around 900 employees are affected.

* giessener-allgemeine.de is part of the nationwide Ippen-Digital editors network

Source: merkur

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