In view of the renewed application for insolvency by the department store chain Galeria Karstadt Kaufhof, the German Association of Towns and Municipalities (DStGB) is calling for a clear restructuring and future concept for the remaining locations.

“Of course, the Galeria shops are important anchor points in many pedestrian zones,” said Bernd Düsterdiek, DStGB representative for community and urban development, to the editorial network Germany (Wednesday). “At the same time, one has to say that this alone is not an argument to save unprofitable locations again and again with tax money”.

“Some branches will have to close,” says Düsterdiek. You have to be that honest. For everyone else, a rescue only makes sense if there is a positive continuation prognosis. “A clear renovation and future concept is needed for the remaining Galeria locations,” said Düsterdiek. “There can’t be any business as usual with fewer businesses.”

Germany’s last large department store group, Galeria Karstadt Kaufhof, is again seeking rescue in protective shield proceedings. The retail giant is coming up with more branch closures. The branch network must be “reduced by at least a third” as part of the protective shield procedure, Galeria boss Miguel Müllenbach told the “Frankfurter Allgemeine Zeitung” on Monday. Layoffs are unavoidable. The group operates 131 department stores in 97 German cities with around 17,000 employees.