retail trade
Galeria renovators are hoping for a yes from the creditor
The 53-year-old business economist Arndt Geiwitz is one of the best-known insolvency experts in Germany. photo
© picture alliance / Marijan Murat/dpa
He plays a key role in the rescue attempt for the badly hit department store group Galeria Karstadt Kaufhof – Arndt Geiwitz hopes for the green light for the renovation.
Arndt Geiwitz, Galeria’s chief representative, hopes that the creditors’ meeting on Monday will give the go-ahead for the restructuring of the last major German department store chain. “My hope is that the creditors will agree again this time because the alternative is much more painful. A rejection of the insolvency plan would mean the end for the company,” said the restructuring expert at the German Press Agency.
At the end of last year, the retail giant had sought rescue in a protective shield procedure for the second time in three years. The restructuring plan that has now been developed provides for the closure of 47 branches and the loss of thousands of jobs. In addition, suppliers, landlords and other creditors should waive claims in the billions.
“The rate for creditors will be in the single digits, maybe a bit lower than last time,” said Geiwitz. This means that if the bankruptcy plan is accepted, the creditors will not even see ten percent of the money that Galeria owes them. If the insolvency plan is rejected, however, they face a total loss.
“My job is to carry out the protective shield procedure in such a way that Galeria then has the best starting conditions to survive on the market in the future and we are well on the way there,” said Geiwitz. Galeria achieved its goals in the negotiations with the landlords and took the necessary steps on the employee side. In addition, regionalization was initiated. “If the creditors now agree, we have achieved everything in this protective shield procedure that a protective shield procedure can achieve.” The future success of the last major German department store chain then depends on the skill of the management.