Germany’s last large department store group, Galeria Karstadt Kaufhof, wants to close 16 of its 92 branches. At the same time, the new owners are giving up two additions to the name. FOCUS online summarizes the most important changes.
A consortium made up of the US investment company NRDC and the entrepreneur Bernd Beetz’s investment company BB Kapital SA would like to take over Galeria. The new owners have not yet wanted to comment on the concept or the amount of the planned investments.
However, the words Karstadt and Kaufhof will be removed from all branches at the end of July. The company will then just be called Galeria. This was announced by insolvency administrator Stefan Denkhaus. “Many of the newer branches only have Galeria on the front,” he said, explaining the decision. The three recent insolvency proceedings are closely linked to the names. That’s why they want to cut off “an old braid”.
The name change would have little impact on customers, as customer cards, vouchers and returns are already processed under the name Galeria.
“We are already profitable. This will increase when we get rid of the old rents in August.” The management of Galeria was satisfied with the company’s current development. Galeria is well on the way to a secure future. “We make sure that each branch is autonomously profitable and can generate its own cash flow,” said Galeria boss Olivier Van den Bossche.
Galeria’s previous headquarters in Essen will move to a new location in the Düsseldorf branch (Schadowstrasse) in the future. “We will do everything we can to lead our business into a successful future. We see good conditions for this, not least due to our sales development in the current financial year,” announced Van den Bossche.
Insolvency administrator Denkhaus recently submitted an insolvency plan to the responsible district court in Essen. This must show how the department store chain can be renovated and operated profitably again in the future.
The takeover by NRDC and Beetz will only take place if the creditors accept the insolvency plan on May 28th and it is then reconfirmed by the court. Denkhaus wants to hand over the company to the new owners by the end of July. Galeria filed for bankruptcy at the beginning of January. It is the third bankruptcy within three and a half years.
A few days ago, insolvency administrator Denkhaus announced the closure of 16 branches. “Each of the branches to be continued must have the potential to achieve the necessary profitability today or in the foreseeable future.”
The final closure, which is scheduled to take place on August 31st, now includes the following branches: