Insolvent German retailer Galeria starts search for investors for 83 stores
After filing for insolvency again, Galeria is seeking buyers with help from Roland Berger. Each of its 83 stores will be reviewed; about 11,250 jobs are at stake. An expert sees a 1 billion euro need.
Archive image · Photo: Raimond Spekking / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
German department store chain Galeria has officially begun searching for one or more investors after filing for insolvency again, the dpa news agency reported, citing sources close to the company. Consultancy Roland Berger is advising on the process. Provisional insolvency administrator Frank Kebekus plans to review each of the 83 stores individually for viability, while business continues for now. Staff were briefed at a meeting on Friday.
It is unclear how many stores will survive. Galeria employs about 11,250 people, according to WirtschaftsWoche. Kebekus is reportedly negotiating with U.S. investment firm Gordon Brothers on financing day-to-day operations; the firm provided a loan of up to 160 million euros in June, secured by merchandise. Revenue from the Christmas season is key to paying for new orders.
Retail expert Johannes Berentzen of consultancy BBE estimates investment needs for building systems and interior fittings at about 1 billion euros. “A new investor needs deep pockets, even if he only takes over half of the stores,” he said.