The company’s staff delegation announced the news on Monday. The announcement was done months after Galeria Karstadt Kaufhof filed for insolvency protection for the second time in less than three years. Galeria Karstadt Kaufhof was for a long time one of Europe’s largest and oldest department store chains but it has been struggling for several years. Those financial problems will result in the closures of 52 of the chain’s 129 stores, along with as many as 5,000 job losses.
The management of Galeria Karstadt Kaufhof has blamed the COVID-19 pandemic, the war in Ukraine, rising inflation and energy prices as well as uncertain consumer and changing consumer habits. The company had already shut around 40 stores and cut some 4,000 jobs after seeking protection during the first lockdown of the coronavirus pandemic in April 2020 and reportedly was granted 680 million euros in state aid.
The remaining 77 stores will be modernized over the next three years with ranges that are more tailored to local needs, with 11,000 jobs being safeguarded, Galeria Karstadt Kaufhof said in a statement.