Galeria Karstadt Kaufhof will close 52 of its 129 department stores by the end of January next year. Costs are to be reduced in the remaining branches.
The department store chain has reached financial concessions in the three-digit million range in negotiations with the property owners, reports the “Food Newspaper”.
Accordingly, the group secured landlord grants of 100 million euros and building cost grants of 17 million euros – plus 23 million euros in annual rent savings. In addition, the group expects a further nine million euros in rent savings and 21 million euros in building cost subsidies from ongoing negotiations.
Galeria Karstadt department store wants to downsize its branch network. 52 department stores are to be closed in two stages by the end of January 2024. Double locations, small branches and economically unprofitable department stores are on the verge of collapse. But the remaining branches would also have to reduce costs, reports the “grocery newspaper”. According to the managing director Miguel Müllenbach, the restructuring lays “the basis for a positive economic perspective”, writes the “Handelsblatt“.
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According to the report of the “Lebensmittel Zeitung”, the group’s chief representative Arndt Geiwitz is said to have won major financial concessions from the site landlords. The insolvency expert is said to have secured landlord grants of 100 million euros for the chain. In addition, there are building cost subsidies of 17 million euros and 23 million euros in annual rent savings.
In addition, the group expects a further nine million euros in annual rental savings from the ongoing negotiations with the property owners. A further 21 million euros should also be saved through construction cost subsidies. When asked by the “Lebensmittel Zeitung” about the considerable sums, the group is said to have given no answer.
AA