28 apr 2024 om 09:12 Update: 1 uur geleden
The large German department store chain Galeria Karstadt Kaufhof is closing sixteen of its 92 branches. In addition, 1,400 of the 12,800 employees will be dismissed, the group announced this weekend.
This is the largest department store chain in Germany. The company has been struggling with financial difficulties for some time. In January, the chain had to file for creditor protection for the third time in a few years.
Galeria Karstadt Kaufhof was founded a few years ago when the two department store chains Galeria Kaufhof and Karstadt became the property of the Austrian Signa. But then that real estate party ran into financial problems, partly due to rising interest rates.
The department stores also face fierce competition from online stores and, according to experts, have a somewhat outdated appearance. The German economy has also not been doing so well lately.
Galeria’s future now appears to be secured. At the beginning of April it was announced that a consortium of American and German investors NRDC Equity Partners and BB Kapital wanted to take over the chain.
The rescue plan still must be approved by creditors. “We will do everything we can to lead our company to a prosperous future,” Belgian CEO Olivier Van den Bossche of the department store chain said in a press release.
Tags: Germanys largest department store chain closes branches layoffs Economy
