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With the start of bankruptcy proceedings, creditors will now be able to register their claims against Galeria Karstadt Kaufhof with the bankruptcy administrator. Lawyer Stefan Denkhaus, who was previously appointed only as interim administrator, has been appointed as bankruptcy administrator, according to a statement from the court on Tuesday.
Negotiations are ongoing with the possible new owner of the company. The binding offer period ended a week ago. Denkhaus announced that there were four bidders. Final negotiations now need to be held with two of them. “Both interested parties have extensive experience in the German retail field and also have the necessary funds for the upcoming investment,” said Denkhaus. He did not name possible investors.
With the start of the trial, Denkhaus takes over Galeria’s business. He wants to complete the sale in April. The final decision on the acquisition of a new owner is made by the meeting of creditors. According to the announcement, the delegation will meet in Messe Essen on May 28 to vote on the bankruptcy plan prepared by Denkhaus.
At the beginning of January, Galeria filed for bankruptcy at the regional court of Essen. This is the third bankruptcy in three and a half years. During this period, the number of branches of the store chain decreased by half, currently there are 92 left, how many of them are still open. According to Denkhaus, this will involve the takeover of at least 60-plus X branches. “We don’t know yet how big this X is,” he said last week.
If there were 60 branches left after the sale, approximately one-third would be closed. Therefore, most of the 12,800 employees have to fear for their jobs.
The bankruptcy administrator’s goal is to reduce rents. Depending on the branch, he aims for a sales rent of between seven and eleven percent, a little more if business is going well. “There is no point in continuing to operate a branch with a rent burden of over 30 percent.”
Rents are often significantly higher at branches located on Signa-owned properties. According to its information, the company pays up to 30 percent of sales there. Denkhaus announced in January that it would close its branches if the landlord had no place to stay. (SDA)
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.
