German department store chain Galeria will retain 76 of its 92 stores after the takeover. Half of the head office staff will also exit.
Better leases
Since the takeover of Galeria Karstadt Kaufhof, administrator Stefan Denkhaus and the new owners have been negotiating the leases of the stores. The aim was to achieve a rent of 7 to 11% of turnover, in order to be able to make each department store profitable. For 16 department stores, however, an economically viable result proved unattainable, Denkhaus told Lebensmittel Zeitung. The department stores closing are mainly in smaller or medium-sized towns, but three branches are also closing in Berlin.
In total, 1,400 of the 12,800 employees will lose their jobs. Jobs are disappearing especially at the Essen headquarters: Galeria is moving to a smaller office and staff numbers are being halved. Over an eight-month period, the department store chain promises to accompany affected employees to new work.
Admittedly, the 76 department stores that remain are more than originally expected. Administrator Denkhaus aimed in advance for a restart of at least 60 outlets. The relaunch plan does still have to be formally submitted to creditors for a vote on 28 May. At the end of July, the administrator hopes to transfer the company to the new owners. In any case, Belgian subsidiary Inno is not joining the transfer: time is pressing to find a buyer.
