Status: 19.06.2020 3:41 p.m.
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It is already clear: Dozens of Galeria Karstadt Kaufhof branches and probably also Karstadt Sports have to finally close due to the economic consequences of the corona. The employees will find out details in the afternoon.
According to information from the dpa news agency, the management of Galeria Karstadt Kaufhof wants to inform employees about the closure plans for 62 of the 172 branches and two “bargain centers” in the early afternoon. Managers should find out details a little earlier.
According to information from the Reuters news agency, 20 Karstadt Sports branches are also to be closed. The final negotiations between management and employee representatives were still ongoing.
Some branches that will be closed according to media reports
Berlin (Charlottenburg, Gropius-Passagen, Hohenschönhausen, Ringcenter, Tempelhof and Wedding), Bielefeld, Bonn, Braunschweig, Bremen, Bremerhaven, Chemnitz, Dessau-Roßlau, Dortmund, Düsseldorf (Schadowstraße and Wehrhahn), Essen, Frankfurt / Main (Hessen- Center and Zeil), Fulda, Gütersloh, Hamburg (Alstertal shopping center, Bergedorf, Mönckebergstraße and Wandsbek), Hanover, Ingolstadt, Cologne-Weiden, Leverkusen, Lübeck, Mainz, Mannheim, Munich (Nordbad, OEZ and Stachus), Mönchengladbach-Rheydt, Nuremberg (Langwasser and Lorenz Church), Osnabrück, Potsdam, Stuttgart / Bad Cannstatt
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6000 jobs are to be cut
According to the trade union ver.di, around 6000 of the 28,000 jobs at the group will be lost as a result of the closings and other cost-cutting measures. Originally, the management had even signaled that up to 80 branches could be closed. But even worse things were apparently prevented by concessions from landlords and employees.
Federal Labor Minister Hubertus Heil called on those involved to refrain from dismissals for operational reasons. “I expect that blanket cuts on the back of the workers will be refrained from,” said the SPD politician. Owners and creditors are obliged not to pursue any “radical plans to run down”, but to invest in maintaining jobs and the future of the company.
Ver.di even hopes to be able to reduce the number of closings even further. “We will fight with all our might for the preservation of the locations and the future of the employees. The last word has not yet been spoken,” said Federal Board member Stefanie Benefitberger. Politicians are also required here.
Department store chain Galeria Karstadt Kaufhof plans to close 62 branches
Carsten Schabosky, WDR, daily news 5:00 p.m., June 19, 2020
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Social plan provided
The closure plans are part of an agreement on a restructuring collective agreement between management, works council and the ver.di union. There should be a social plan for the employees concerned. It also includes a transfer company for employees who have to leave the company. In addition, collective bargaining regulations have been made for employees who remain with the company.
According to the company’s management, the closings are the only way to save the company. You know what this means for the employees concerned, said General Manager Arndt Geiwitz. But the affected branches endangered the entire company.
Since April under the protective umbrella
The retail giant got into a serious crisis due to the pandemic-related closure of all branches and had to seek rescue in a protective shield procedure at the beginning of April. Galeria Karstadt Kaufhof expects the pandemic and the economic downturn it triggered to lose sales of up to 1.4 billion euros by the end of 2022.
“The department stores are systemically relevant”
The announcement is also expected with unrest in many municipalities. Norbert Portz from the German Association of Towns and Municipalities warned of the abandonment of many inner cities when the first closure plans became known in May. “The department stores are systemically relevant for many inner cities,” he told the dpa. In his opinion, a loss can hardly be compensated for, especially for many structurally weaker inner cities.
The ver.di union also warned at the time that a wave of closings at Galeria Karstadt Kaufhof would have effects far beyond the company. In the medium term, tens of thousands of jobs at other retailers and the attractiveness of entire city centers are threatened.
Galeria Karstadt Kaufhof closes branches
Sebastian Wehner, WDR, June 19, 2020 1:47 p.m.
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