Internal letter reveals: Galeria Karstadt Kaufhof wants to close more branches than announced
Created: 12/20/2022, 12:02 p.m
By: Helena Gries
Another setback for Galeria Karstadt Kaufhof: According to an internal document, more branches are now closing than previously announced.
Kassel – The well-known department store chain Galeria Karstadt Kaufhof has been in crisis for some time.
After a first protective shield insolvency in 2020, during which 40 branches in Germany had to be closed and around 4000 jobs were lost, there was recently hope for the insolvent company.
An investor had announced that it would take over 47 branches from Galeria Karstadt Kaufhof.
The online retailer buero.de has already presented a possible new logo for the Galeria locations that it intends to take over.
However, there is a setback for the remaining branches.
Significantly more stores in the insolvent department store chain are to be closed than previously announced,
reports
hna.de.
Gallery Kaufhof GmbH | |
founding | 1879, Stralsund |
founder | Leonard Tietz |
resolution | 2020 |
Galeria Karstadt Kaufhof: Up to 90 branches are on the verge of closure
An internal letter from the general works council of Galeria Karstadt Kaufhof is said to have revealed that up to 90 branches are on the verge of closure.
This is evident from several media reports.
As reported by the
Lebensmittelzeitung
, among others , the said e-mail from the general works council to the employees also mentions further staff cuts of up to 30 percent in the branches.
Termination of the employment contract: the most important facts that everyone should know
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Accordingly, it means that the personnel cost ratio per house should be reduced below the current average value.
Galeria Karstadt Kaufhof currently employs around 17,000 people.
However, the company has not yet commented on specific figures.
The negotiations are still ongoing, according to the insolvency administrator Arndt Geiwitz.
Final decisions have not yet been made.
Insolvency at Galeria Karstadt Kaufhof: job cuts in several areas
The service center and facility management areas are said to be particularly affected by the job cuts at Galeria Karstadt Kaufhof.
The letter shows that the management in the service center even wants to cut half the staff.
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Setback for Galeria Karstadt Kaufhof: Now more branches are supposed to close than previously announced.
(Iconic image) © Oliver Berg/dpa
According to the General Works Council of Galeria Karstadt Kaufhof, downsizing and outsourcing are the "creative solutions" of the management.
However, the question of how the measures are to be implemented at the locations that will be continued remains unanswered.
(hg)
