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The Signa Group crisis brings its next victim. German department store chain Galeria Karstadt Kaufhof plans to file for bankruptcy on Tuesday. The next big player in the retail trade is now bankrupt after the Benko empire Signa Prime was dealt a blow a week ago.
There has been speculation about the application since last week; Only a miracle could save the department store chain. However, this did not happen, as German news channel N-tv reported, citing sources at Signa. Galeria had been under pressure for a long time. Signa was required to make aid payments of 200 million euros (186.4 million francs). However, due to the current decline of Signa Group, payment is impossible.
Not the first bankruptcy filing
The Galeria store chain has been in a stalemate for a long time. He has already mentioned the liquidity crisis twice in 2020 and 2022. At that time, the corona epidemic and the comprehensive conceptual restructuring of department stores were very important.
The branch network suffered major damage in each case. Galeria Karstadt Kaufhof still had 171 branches in mid-2020, but now has 86 branches.
Despite the turbulence, the works council believes the department store chain can survive in the future. The collapse of the Signa empire means Galeria can rid itself of the group and its interests. All you have to do is find a new owner. It’s an undertaking that may have its challenges. (wgr)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
