German department store giant Galeria Karstadt Kaufhof said on Tuesday it had filed for insolvency following the collapse of its parent Signa. Galeria is Germany’s most prominent retailer. The company stated it is seeking a new owner.
This is the third insolvency in less than four years for the department store chain. The pandemic pushed it to file in 2020, and soaring inflation and energy costs in the wake of the Ukraine war hit it again in 2022. After the last insolvency, the group had to close around 40 stores. The last 18 of these will close in the course of this month. This time, Galeria’s troubles stem from its owner Signa, which had committed to providing Galeria with 200 million euros.
The department store group is now looking for a new owner. According to the management, the numbers have recently been good. The first quarter of the current financial year 2023/2024 was up on the previous year. The insolvencies of the Signa Group have counteracted this positive development at Galeria. According to the management, their are already talks to potential investors for a takeover. Who this could be is still questionable.
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