Galeria Karstadt Kaufhof: These 16 branches will shut on the finish of August | EUROtoday

Status: 2:35 p.m | Reading time: 3 minutes

DThe financially troubled division retailer group Galeria Karstadt Kaufhof is closing 16 of its 92 branches on August 31 this yr. This was introduced by insolvency administrator Stefan Denkhaus on Saturday. Berlin (Ringcenter, Spandau, Tempelhof), North Rhine-Westphalia (Essen, Köln Breite Straße, Wesel) and Bavaria (Augsburg, Regensburg Neupfarrplatz, Würzburg) are significantly badly affected by closures, with three shops every. In addition, these shops are supposed to shut: Chemnitz, Leonberg, Mainz, Mannheim, Oldenburg, Potsdam, Trier Fleischstrasse.

Of the roughly 12,800 folks the corporate employs, 11,400 ought to hold their jobs. 1400 should go. According to Galeria, a reconciliation of pursuits and a social plan had been concluded with the final 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,” mentioned Galeria boss Olivier Van den Bossche. The firm's headquarters are to maneuver from Essen to the Düsseldorf Shadowstrasse department.

The division retailer group filed for chapter at the start of January. It is the third chapter inside three and a half years. At the time, Van den Bossche cited, amongst different issues, the insolvencies of the Signa Group of the earlier proprietor René Benko as the explanation for the tough scenario. It has been identified because the starting of April {that a} consortium made up of the US funding firm NRDC and entrepreneur Bernd Beetz's firm BB Kapital SA needs to take over the division retailer chain.

However, the settlement concluded between traders and Galeria will solely come into impact if the collectors agree. Insolvency administrator Denkhaus needs to current the insolvency plan for the change of possession by the tip of April. The plan is not going to be legally binding till the collectors' assembly approves it on May 28 and it’s then reconfirmed by the courtroom. Denkhaus needs handy over the corporate to the brand new house owners by the tip of July.

Union calls for a viable idea

The Verdi service union has sharply criticized the closure plans. “Every location that is closed leads to further desolation of our inner cities. “What the employees have to endure goes far beyond what is bearable,” mentioned Verdi federal board member answerable for commerce Silke Zimmer on Saturday in Berlin. Once once more, the impression arises that the workers have gotten pawns in a rental poker recreation. The usually overpriced rents should be negotiated with landlords.

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“There is such a need in retail that employees can be accommodated immediately”

According to the net job portal Indeed, the job prospects for terminated staff of the Galeria Karstadt Kaufhof retail group are usually not unhealthy. “The affected retail employees are likely to find a new job quickly, because the demand for employees from this professional group is currently comparatively high despite Germany’s difficult economic situation,” mentioned labor market knowledgeable Annina Hering from Indeed on Saturday, in accordance with the announcement.

In Germany, considerably fewer persons are at the moment being sought in virtually all sectors than within the earlier yr. However, the retail and medical professions had been an exception, with elevated demand for brand new workers of greater than 6 p.c every in comparison with 2023. “I am therefore confident that most of the Galeria Karstadt Kaufhof employees who are now losing their jobs will soon find themselves in permanent positions again,” emphasised Hering. In the most effective case state of affairs, a brand new employment contract with improved situations is even attainable.

However, the labor market knowledgeable admitted that the roughly 450 staff who will lose their jobs on the firm headquarters will most likely have a tougher job search. The marketplace for workplace jobs has not too long ago declined.

The Berlin-Brandenburg commerce affiliation additionally sees good prospects for the workers of the branches which are being closed by the retail group. “There is such a need in retail that employees can find accommodation immediately,” mentioned managing director Nils Busch-Petersen on Saturday to the dpa.