But no 90 closures
Clearcut at Galeria branches averted?
01/19/2023 10:43 am
Even after more than two months, it is not clear how many Galeria branches will be closed as part of the insolvency proceedings. According to a media report, a clear cut, in which only 40 branches would have remained, is now to be avoided. The new boss of the chain is apparently also certain.
The number of branch closures at Galeria Karstadt Kaufhof should not be as high as feared in a letter from the general works council in December. At that time there was talk of up to 90 closures of the 131 branches nationwide. In Trier and Nuremberg, for example, the impending end has long been a big topic in the local press.
As the “Süddeutsche Zeitung” has now learned from business circles, around 60 branches are to be closed as part of the insolvency proceedings. Double locations, branches in close proximity to each other and district branches in large cities are particularly affected.
According to the newspaper, tough austerity measures are also planned at the company headquarters in Essen. There, 40 percent of the costs are to be saved. According to the information, up to 600 of the 1,200 employees could lose their jobs.
Branches that would be fairly certain to continue include those that are relatively successful. And those who belong to the 22 branches owned by the Signa Group also allegedly have better chances.
Media reports have also been confirmed that Galeria boss Miguel Müllenbach is to be replaced. The successor should be the former Kaufhof boss Olivier van den Bossche, who became Galeria sales manager last year.
In an interview shortly before the works council’s letter was published, Müllenbach said that the branch network would be reduced “by at least a third”. By the end of January, the company wants to announce which branches will continue to operate or be closed.
At the beginning of the week, the department store chain said that “several bidders” had expressed interest in taking over the business. “Due to the ongoing discussions with landlords and possible buyers, it is not clear at this point in time which branches will continue to operate or be closed,” said Germany’s last major department store chain.
The company did not provide any information about the interested parties. However, the Dortmund fashion retail chain Aachener has already reported that it is in talks with the department store chain about taking over “a large number of Galeria locations”. “Should there be takeovers, all employees of the affected branches will be offered the opportunity to keep their jobs,” the chain announced. Aachener did not comment on the question of which locations are suitable for them.