Talks underway

Two interested parties for Galeria department store chain

Store in Duisburg (archive photo)

(Bild: APA/dpa/Christoph Reichwein)

Regular insolvency proceedings for the ailing Galeria Karstadt Kaufhof department store chain were opened at Essen Local Court on Monday. Talks with a potential new owner are already underway. There were four bidders and negotiations are now to be held with two of them.

This was announced by lawyer Stefan Denkhaus, who was the provisional administrator and is now the insolvency administrator of the Signa Group company. "Both interested parties have extensive experience in the German retail sector and also have the necessary funds for the upcoming investment." He did not disclose the names of the potential investors.

Denkhaus wants to finalize the sale of Galeria before the end of April. However, the final decision will be made by the creditors. A vote on the insolvency plan will be held on May 28. Denkhaus is pursuing the goal of reducing rents. Depending on the store, he is aiming for a turnover rent of seven to eleven percent. "It makes no sense to continue a store with a rent burden of more than 30 percent," says Denkhaus. 

92 stores at present
There are currently 92 stores. It remains to be seen how many will remain. According to Denkhaus, at least 60 will be taken over. Some of the 12,800 employees therefore have to fear for their jobs. "We are trying to maintain the best possible store network and are really fighting for every store," said the lawyer. 

Galeria filed for insolvency in Essen at the beginning of January. This is already the third insolvency in three and a half years. During this period, the number of stores in the department store chain has halved.