The Galeria Kaufhof department store chain is on the verge of bankruptcy. Things are looking bad for some locations, others have already been secured. Experts have looked into what speaks for and against a branch.
How will Galeria Kaufhof continue after bankruptcy? Which branches have a future? At the request of eco24.de the department store chain explained its next steps a few days ago. But what reasons can ultimately decide on a place?
A labor of love for some experts. A Economists even draw a somewhat drastic comparison with discount chain Aldi, where Galeria Kaufhof is not doing well. If Galeria boss Miguel Müllenbach gets his way, about a third of the 131 stores will be closed.
Galeria Kaufhof bankrupt: new concept should help
According to a report in Handelsblatt (behind the payment barrier) predicts Johannes Berentzen, commercial property specialist and managing director of BBE Handelsberatung, who eventually “Less than 100 department stores remain”. Other experts even predict that only 50 department stores will not be closed.
| Kaufhof Gallery |
| Miguel Müllenbach |
| 1879, Stralsund |
| Leonhard Tietz |
| 2020 |
Opposite to eco24.de has Galeria Kaufhof upon request it somehow contradicted the gloomy predictions and also referred to the new concept. Galeria 2.0 should therefore save more branches than many assume. The intention is to “react even more specifically to the needs of the local population”. Three types of department stores are planned. In any case, Arndt Geiwitz, renovator of Galeria Kaufhof, will cut costs.
That’s why Galeria 2.0 is already saving these branches of the Kaufhof
After all, the Galeria 2.0 concept could have already saved some branches. According to the Handelsblatt article, this includes three houses. They have been extensively renovated for the realignment in October 2021: Frankfurt Hauptwache as an example of a “cosmopolitan city building”, Kassel as a so-called “regional magnet” for medium-sized cities and Kleve as a “local forum” for smaller cities.
According to the Euskirchen article, there should also be good chances after the modernization, as well as the department stores in Fulda and Koblenz and the branches in the Centro shopping centers in Oberhausen and in Hamburg’s Alstertal centre.
Top location that Galeria Kaufhof will not close in case of insolvency
Even the best-ever locations for Galeria Kaufhof are not expected to be affected by any closures. Here’s what the Handelsblatt says: “In Berlin, where Galeria has ten stores, only the magnificent building on Alexanderplatz belongs to this category. In the east, the house on Leipzig’s Neumarkt also belongs to this rank. Employees of the shops on Hohe Strasse in Cologne, Königsallee in Düsseldorf, Königsstrasse in Stuttgart, Marienplatz in Munich, Mönckebergstrasse in Hamburg and Hauptwache in Frankfurt also need not worry.” The overview:
- Stuttgart Königstrasse
- Berlin at Alexanderplatz
- Frankfurt Main Guard
- Leipzig on the Neumarkt
- Hamburg Moenckebergstrasse
- Colony High Street
- Königsallee in Dusseldorf
- Munich Marienplatz
Also Heilbronn can give hope that Galeria Kaufhof will continue to operate. Because, as they say, the owner, Signa Holding, is still a co-owner of nearly 50 department stores. These include: Aachen, Heilbronn, Würzburg, Münster (Ludgeristraße) and Mannheim. A closure will likely only happen here if Signa already has its new venue plans in place.
Galeria Kaufhof: bankruptcy branches will close in double locations
It becomes problematic for places where there are “double or multiple locations in many cities” due to the merger of Kaufhof and Karstadt. Saarbrücken, Regensburg and Nuremberg are considered dual locations, where only one branch is likely to survive.
Protective shield processes
According to the definition, the protective shield procedure is a special type of procedure under German bankruptcy law. It combines interim self-administration with the aim of presenting an insolvency plan at an early stage in order to facilitate business restructuring.
Branches of the Galeria Kaufhof, which according to experts will almost certainly have to close, are the houses in Halle and Hanover (An der Marktkirche) – here the lease expires at the end of January 2023. In Berlin-Wedding, the closure is scheduled for the end of 2023. Those in charge are not making very specific statements about which locations they will actually have to close in the end. Geiwitz explains: “It is not yet clear which houses will be closed. Whether a position can be held will also largely depend on these talks. We assume that there will be clarity on this during January next year ”.
