Germany’s last remaining major department store chain, Galeria Karstadt Kaufhof, is set to get new owners after its third insolvency filing in four years. The prospective new owners, a consortium of U.S. private equity firm NRDC Equity Partners and German businessman Bernd Beetz’s BB Kapital SA, have announced their intention to keep more than 70 of the chain’s current 92 branches open.[1][2]

This move is expected to preserve most of the company’s 12,800 jobs, according to insolvency administrator Stefan Denkhaus.[2] The deal is contingent on approval from a court in Essen and Galeria’s creditors, who are scheduled to meet on May 28.[2]

Galeria Karstadt Kaufhof, formed by the merger of rivals Karstadt and Kaufhof a few years ago, has been through two rounds of store closures since seeking insolvency protection during the first COVID-19 lockdown in April 2020.[2] Its most recent insolvency filing came in January, following similar filings by several companies in the trading and real estate group of Austrian businessman Rene Benko, including Signal Retail Selection, Galeria’s previous owner.[2]

The prospective new owners have expressed their commitment to investing, developing, and growing the department store chain in the long term.[2] Bernd Beetz stated at a news conference in Essen that they “want to invest, develop and grow in the long term.”[2]

While the final outcome will depend on the court’s and creditors’ approval, the new owners’ plan to retain over 70 stores offers a glimmer of hope for the struggling department store chain and its employees amidst the challenges faced by the retail industry.[1][2]

Citations:
[1] https://www.retaildetail.eu/news/fashion/new-galeria-owners-want-to-save-over-70-department-stores/
[2] https://apnews.com/article/germany-galeria-department-stores-nrdc-b9501b1601bf45aa31a09b65dc717403
[3] https://www.retaildetail.eu/region/duitsland/
[4] https://www.retaildetail.eu/news/fashion/hema-reconsiders-coffee-subscription/
[5] https://www.retaildetail.eu/news/fashion/armani-preparing-sell/