German retail: Galeria Karstadt Kaufhof is out of the woods

German retail: Galeria Karstadt Kaufhof is out of the woods

Out of the woods. Galeria Karstadt Kaufhof has gone out of bankruptcy proceedings. Yet, they will have to close over 40 selling stores, therefore cutting an unspecified number of jobs. For the records, its subsidiaries have overcome insolvency proceedings as well: namely, Karstadt Sport, Karstadt Feinkost, Le Buffet and Dinea.

Out of the woods

The annulment of bankruptcy proceedings, ruled by the District Court of Essen, follows creditors’ approval of the reorganization plan submitted by the company. Such plan turns out to be extremely painful though. In fact, they are going to close over 40 selling stores and cut, consequently, thousands of jobs. However, the company announced the rescue of 130 stores along with around 16,000 employees. Galeria Karstadt Kaufhof had formerly filed for bankruptcy at the beginning of April 2020, while dealing with Coronavirus full emergency.

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