Galeria Karstadt Kaufhof, which was facing bankruptcy, has achieved a crucial milestone towards rescue with the support of the Signa-Conglomerate of companies owned by René Benko. The Essen district court opened standard insolvency proceedings for the company, allowing creditors to register their claims against Galeria Karstadt Kaufhof with the appointed insolvency administrator, Attorney Stefan Denkhaus.
Discussions are already underway with potential new owners for the company, as the binding offer period has expired. Denkhaus announced that there were four bidders and final negotiations will take place with two of them. The insolvency administrator aims to complete the sale in April, with the final decision on a new owner to be made by the meeting of creditors on May 28th.
Galeria filed for insolvency at the beginning of January, marking the third bankruptcy within three and a half years. The goal is to maintain at least 60 plus X branches after the sale, with negotiations ongoing with landlords to reduce rents. The number of remaining locations depends on these negotiations, as branches with high rental burdens may have to close.
With the possibility of closing branches and reducing costs, Galeria Karstadt Kaufhof is working towards a successful restructuring to secure its future in the retail market. The insolvency administrator is focused on finding a sustainable solution while protecting as many jobs as possible within the company.
