The financially ailing department store group Galeria Karstadt Kaufhof is closing 16 of its 92 stores as of August 31. Included among the 16 stores is also the previous head office in Essen. The company’s administration will be relocated to the branch building in Düsseldorf.
The following regions, and cities are affected by the closure(s):
- Berlin, with three stores
- North Rhein-Westphalia, with three stores
- Bavaria, with three stores
- Chemnitz
- Leonberg
- Mainz
- Mannheim
- Oldenburg
- Potsdam
- Trier
This means that out of the 12,800 employees, a total of 1400 will lose their jobs, including 450 at the head office. According to Galeria, a reconciliation of interests and a social plan were agreed with the general works council on Friday.
A consortium consisting of the US investment company NRDC and the company BB Kapital SA, owned by entrepreneur Bernd Beetz, intends to take over the department store chain. However, the agreement will only become legally binding if the creditors’ meeting approves it on May 28 and it is subsequently confirmed by the court.
