As of: February 2, 2024, 1:14 p.m
By: Bona Hyun
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Galeria Kaufhof follows René Benko's Signa into bankruptcy.
Employees blame the parent company and vent their anger.
Berlin – Do the Galeria department stores still have a chance despite bankruptcy?
The desperate search for a new owner has been in full swing since the bankruptcy filing.
The department store giant Galeria Karstadt Kaufhof is expected to have a new owner in just two to three months.
But despite hope for a new start, the employees' mood is clouded.
After Signa's difficulties: Bad mood among Galeria employees
Three bankruptcies since 2020 - the consequences are noticeable among the employees of Galeria Karstadt Kaufhof (GKK).
After the
Three bankruptcies and branch closures left the company “broken,” employees told
focus.de
.
This was preceded by the difficulties of the parent company Signa Holding.
Several companies from the trading and real estate group of the Austrian entrepreneur Benko had filed for bankruptcy, including Signa Retail Selection AG, to which GKK belongs.
There is great displeasure towards Benko.
A Munich GKK employee told
focus.de
: “Benko broke our necks.” The Austrian billionaire had “exploited” the company and now let it “bleed to death.”
He wondered where the federal money had gone and why it hadn't been invested in the branches.
“He has enough money and leaves a mess behind.”
After the Benko bankruptcy: a gloomy mood is spreading among the employees of Galeria Kaufhof.
© Jörg Carstensen/dpa
Concern after Benko bankruptcy: Galeria sees companies threatened by bankruptcies
Already in January, Galeria expressed concerns about the consequences of Signa Holding's insolvency.
The insolvencies of the Signa Group would have thwarted Galeria's good development and would threaten the company, the insolvency administrator Stefan Denkhaus was quoted as saying in a company announcement.
“However, the numerous bankruptcies of the Signa Group are causing massive damage to Galeria, hindering ongoing business and severely restricting future development opportunities through high rents and expensive services,” wrote Galeria’s press office in a statement dated January 9, 2024.
The Swiss Signa Retail Selection AG announced in December 2023 that it would wind up the business in an orderly manner.
She is responsible for the Galeria department store division, which is likely to be up for sale.
The operational business of the department stores will not be affected by the creditor protection proceedings, according to a statement from Signa Retail Selection AG, which was quoted by
Handelsblatt
.
Looking for investors for Galeria after bankruptcy – renovator writes begging letter
How great the real need of the Galeria department stores really is was probably shown in mid-January when Erhard Grossnigg, board member and reorganizer of two insolvent Signa companies, wrote a begging letter to investors.
It was the second one in less than two weeks.
He recently wrote to the recipients to offer them to provide the insolvent Signa companies with money.
He repeated this offer in this second letter, which is available to Die
Zeit
.
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The letter did not mention any Signa participation in the GKK.
However, given that Galeria was set to receive millions of euros from the Signa Empire by 2025, the management of the department store chain may have registered the message with concern, writes
Zeit
.
Galeria follows René Benko's Signa into bankruptcy - apparently there are already interested parties
Most recently it was said that several investors had already shown interest in the Galeria department store chain after the bankruptcy.
According to reports from
Bild
, entrepreneur Bernd Beetz is one of them.
Beetz was head of the perfume and cosmetics group Coty for many years and is said to have had several conversations with Galeria representatives.
The 73-year-old made it clear that he owns at least 60 of the 92 department store branches
would take over.
For the financing, Beetz probably wants to bring the billionaire Reimann family on board, which holds 51 percent of Coty through the family holding company JAB.
According to Bild,
a spokeswoman for the Reimann family
already denied plans for Galeria.
(bohy)