Galeria Kaufhof is once again seeking rescue in protective shield proceedings. The Association of Insolvency Administrators sees this critically. Chairman Niering explains that only ten percent of the 680 million euros in financial aid could be saved.
The department store Galeria Kaufhof is again asking for rescue in a protective shield procedure. It would already be the second protective shield procedure, which the Association of Insolvency Administrators (VID) sees critically. In an interview with “Bayern 2”, VID chairman Christoph Niering explains that a large part of the 680 million financial aid is probably gone. According to Niering, only about ten percent can still be saved.
“You have to ask yourself the question of sustainability with the second insolvency. One could get the idea that the renovation was not fundamental enough the first time,” said Christoph Niering, Chairman of the VID industry association, in an interview with Bayerischer Rundfunk.
With a new rescue of Galeria, you have to “go a step further,” said Niering. “So that there doesn’t have to be a third bankruptcy procedure. But it wouldn’t be the first case that only went through a successful reorganization the second time around.”
According to media reports, the money from the first protective shield procedure is not secured against insolvency, says the chairman of the professional association of insolvency administrators and trustees in Germany. “And there is to be feared that it is mostly gone.” Only about ten percent of the previous financial aid of around 680 million euros should still be able to be saved in the event of a Galeria bankruptcy. “So the majority will be gone,” said Niering, who is not involved in Galeria’s bankruptcy proceedings.
Investor Markus Schön now wants to take over 47 endangered Galeria branches. The managing director of the online retailer Buero.de confirmed this to “n-tv”. He is interested in medium-sized cities such as Fulda, Goslar and Wismar. Almost 6,000 employees would be affected.
Schön sees the protective shield procedure as an opportunity: “The less specialized you are, the easier it is to be replaced on the Internet, but with shop-in-shop concepts you can revitalize city centers in medium-sized locations.” Takeover decisions could be made at short notice because the major Austrian investor René Benko already presented and took over the group completely in 2019.
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