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credit: Markus Mainka, picture alliance
credit: Markus Mainka, picture alliance

Creditors Have Approved The Insolvency Plan For Galeria

The creditors of Galeria Karstadt Kaufhof have approved the restructuring plan for the insolvent department store chain, announced the insolvency administrator Denkhaus. Despite the rescue, 1,400 people will lose their jobs.

The insolvency proceedings are thus formally about to be concluded. Following the end of the objection period, the competent Essen district court can terminate the proceedings in June. The way is then finally clear for the restructuring of the retail giant and the takeover by the new owners NRDC and Bernd Beetz.

Around 120 people representing around 4,600 creditors took part in the non-public event in Essen, Germany on Tuesday. By accepting the insolvency plan, they will once again have to forego a lot of money.

In recent weeks, landlords, suppliers and other creditors such as the federal government have registered claims amounting to 886.1 million euros. It is expected that only up to 22.5 million euros – or 2.5 to 3.0 percent – will flow back to them.

On top of around 1,400 employees losing their jobs, the number of stores will also be reduced from 92 to around 76. Moreover, it remains unclear what form the upcoming restructuring will take. Ver.di negotiator Marcel Schäuble once again demanded a viable concept for the future from the new owners.


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