As of: April 27, 2024 11:54 a.m
The ailing retail group Galeria Karstadt Kaufhof is giving up 16 of its remaining 92 department stores in Germany. A branch in Lower Saxony is also affected.
As the insolvency administrator Stefan Denkhaus announced on Saturday, the branch in Oldenburg must close on August 31st of this year. According to the ver.di union, between 50 and 60 people work there.
Oldenburg’s mayor finds the decision “difficult to understand”
Oldenburg’s mayor Jürgen Krogmann (SPD) reacted to the announcement with incomprehension. “According to the information we have, Galeria Oldenburg is one of the group’s still profitable houses.” The decision is therefore difficult for the employees to understand, says Krogmann. Since the last insolvency proceedings, there has been a close exchange with the property owner and the branch manager of Galeria in Oldenburg. In March 2023 there was an approximation in the rental price, which meant that the Oldenburg Galeria branch could be saved. “We will continue to maintain close contact with Galeria and the landlord in order to avert the worst and perhaps ensure that the location continues to exist,” announced the mayor. “Hope dies last.”
Ver.di: Contribution to the desolation of the city center
Sabine Gatz, regional department head of the ver.di regional district of Lower Saxony-Bremen, said on Saturday that there were already concerns about the location because of its relative proximity to Bremen. However, the branch is extremely important for Oldenburg’s city center: “It has attracted streams of visitors.” Gatz described the planned closure as a “contribution to the further desolation of the city center.”
No other branches in the north affected
According to the insolvency administrator, all other locations of Galeria Karstadt Kaufhof in Lower Saxony – including in Hanover, Göttingen and Braunschweig – are not affected by the closures. Braunschweig’s mayor Thorsten Kornblum (SPD) described the decision as “very important news in challenging times” for employees. He sees the preservation of the Braunschweig branch as an opportunity: “Continued operation gives everyone involved the opportunity to further develop the location and make it sustainable in the long term,” says Kornblum. The ver.di regional district also welcomes the retention of the additional branches. “We are happy about every location, but it is annoying that the employees now have to pay the price for bad business decisions again,” said Gatz, referring to Oldenburg. No branches will be closed in Bremen, Hamburg, Mecklenburg-Western Pomerania and Schleswig-Holstein either.
Locations of Galeria Karstadt Kaufhof in Lower Saxony
BraunschweigGoslarGöttingenHannoverLüneburgOldenburg (to be closed)
Locations in Hamburg
Hamburg Alstertal shopping centerHamburg EimsbüttelHamburg Mönckebergstrasse
Locations in Schleswig-Holstein
Locations in Mecklenburg-Western Pomerania
Other locations in the north
Around 1,400 employees lose their jobs
Across Germany, 76 branches of the last large department store group are to be retained. Of the approximately 12,800 people the insolvent company still employs, 11,400 are expected to keep their jobs. 1,400 people have to leave. According to Galeria, a reconciliation of interests and a social plan were concluded with the general works council on Friday. “We will do everything we can to lead our business into a successful future. We see good conditions for this, not least due to our sales development in the current financial year,” said Galeria boss Olivier Van den Bossche.
Third bankruptcy in three and a half years
Galeria Karstadt Kaufhof filed for bankruptcy at the beginning of January. It is the third bankruptcy within three and a half years. At the time, Galeria boss Olivier Van den Bossche cited, among other things, the insolvencies of the Signa Group of the previous owner René Benko as the reason for the difficult situation. It has been known since the beginning of April that a consortium made up of the US investment company NRDC and entrepreneur Bernd Beetz’s BB Kapital SA wants to take over the department store chain. Insolvency administrator Denkhaus wants to present the insolvency plan for the change of ownership by the end of April. However, the agreement will only come into effect if the creditors’ meeting approves it on May 28th. Denkhaus wants to hand over the company to the new owners by the end of July.
Further information
The insolvent department store chain is closing 16 branches in Germany. The houses in Wismar and Rostock are not affected. (04/27/2024) more
According to reports, a US investor has been chosen to operate the 92 department stores – also in Wismar and Rostock. (04/09/2024) more
Whoever won the bidding competition will be announced on Wednesday. There are also several branches in Lower Saxony. (04/09/2024) more
It is the third bankruptcy for the department store group in four years. A new owner is now being sought. There are still three branches in Hamburg. (09.01.2024) more
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NDR 1 Lower Saxony | Current | April 27, 2024 | 12:00 o’clock