Galeria seeks a buyer: insolvent German department store chain starts investor hunt
After its latest insolvency filing, the search for new owners has begun. All 83 stores stay open for now, and it is unclear which ones will close.
Archive image · Photo: Raimond Spekking / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
The search for one or more buyers for insolvent German department store chain Galeria has officially begun, the German news agency dpa reported, citing people close to the company. Consultancy Roland Berger is advising on the process. Galeria recently filed for insolvency again.
Its 83 stores continue to trade for now. Provisional insolvency administrator Frank Kebekus told staff on Friday that he will review the viability of each store individually. According to the report, he is negotiating with US investor Gordon Brothers, which provided a loan of up to 160 million euros secured on merchandise in June, over funding for the Christmas season.
Galeria employs 11,250 people, and its group works council says it is "cautiously optimistic". Retail expert Johannes Berentzen of consultancy BBE puts the investment needed for building systems and fittings at around one billion euros. A new investor would need "deep pockets", he said, even if it took over only half of the stores.