Galeria Karstadt Kaufhof, a department store group on the brink of bankruptcy, has taken a significant step towards recovery with the support of the Signa-Conglomerate. Renowned for its ownership of several companies, René Benko has provided crucial assistance in this critical situation. The Essen district court initiated 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. According to Denkhaus, four bidders have shown interest in acquiring Galeria Karstadt Kaufhof. Final negotiations will take place with two of these bidders. The insolvency administrator aims to complete the sale in April, and the final decision on a new owner will be made by a meeting of creditors on May 28th.
Galeria filed for insolvency at the beginning of January, marking its third bankruptcy within three and a half years. The company’s goal is to maintain at least 60 plus X branches after the sale while negotiating rent reductions with landlords. 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.
