Galeria Karstadt Kaufhof has been doing poorly financially for a long time. The group now plans to close only 60 branches. In December, there was talk of 90 branch closures.
The number of branch closures at Galeria Karstadt Kaufhof should not be as high as feared in a letter from the general works council in December. At that time there was talk of up to 90 closures of the 131 branches nationwide. As the “Süddeutsche Zeitung” learned from business circles, around 60 branches are now to be closed as part of the insolvency proceedings. Double locations, branches in close proximity to each other and district branches in large cities are particularly affected.
Tough austerity measures are also planned at the company headquarters in Essen. There, 40 percent of the costs are to be saved. According to the information, up to 600 of the 1,200 employees could lose their jobs. Media reports have also been confirmed that Galeria boss Miguel Müllenbach is to be replaced. The successor is to be former Kaufhof boss Olivier van den Bossche, who became Galeria sales manager last year.
How many branches will be closed has been the subject of speculation for more than two months. In an interview shortly before the GBR letter was published, Müllenbach said that the branch network would be reduced “by at least a third”. By the end of January, the company wants to announce which branches will continue to operate or be closed.