“Give us the chance”
Insolvency administrator begs Galeria staff to “remain loyal”
January 9, 2024, 6:04 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
The management of Galeria Karstadt Kaufhof admits that further locations could be closed as a result of the insolvency proceedings. The insolvency administrator appeals to employees not to resign. The goal is to “pull the cart out of the mud together,” he says.
The provisional insolvency administrator of the Galeria Karstadt Kaufhof department store chain has appealed to employees to “remain loyal to the company”. “We now have the insolvency benefit period until the end of March,” said lawyer Stefan Denkhaus in Essen. The Federal Employment Agency has announced that insolvency money will also be paid in this procedure. “Give us the chance to pull the cart out of the mud together and lead us into a good future.”
He has no expectations that the state will step in again with fresh money. According to its own information, the department store chain currently has more than 15,000 employees, including 12,500 permanent employees, plus seasonal workers.
According to management, it is still unclear whether there will be further store closures at the Galeria Karstadt Kaufhof department store group as a result of the insolvency proceedings. “We can’t say that now,” said CEO Olivier Van den Bossche. “As of today we have to see how the rental negotiations are going.” They haven’t started yet.
Good future only through “reasonable rent”
There are 92 branches that will continue to operate. “But as I said, the rental negotiations still have to be ongoing and then we have to draw the conclusions.” Van den Bossche continued: “If we have a reasonable rent, the department store has a very good future in Germany.” However, it is very difficult when burdened with rents that are actually not in line with the market. All properties are rented, said Denkhaus.
“There are branches that are doing well. There are some branches where we will have to renegotiate,” he added. This also applies to the properties owned by the Signa real estate company, which in turn had to file for insolvency. “We will then have to conduct negotiations with the colleague who is assigned there. But these are exactly the kind of negotiations that you would have with a non-insolvent landlord,” Denkhaus continued.