What: The insolvency proceedings for Galeria Karstadt Kaufhof ended as a result of the decision from the Essen District Court.

Why it is important: With the end of the proceedings, a reorientation in the operative business should begin and a new CEO will take command.

Germany’s last large department store group will get a restart as a court in Essen will lift the insolvency proceedings on June 1st.

The proceedings will be cancelled after confirmation that the insolvency plan has become legally binding.

The company will focus on selling fashion items, optimize its own brands, and reduce the range of products such as toys and stationery in the future.

The remaining branches will also be completely modernized within three years and will be controlled on a more decentralized basis with a more locally adapted product range.

In order to implement the insolvency plan, Signa Group intends to provide up to EUR 200 million.

Galeria Karstadt Kaufhof ends insolvency proceedings

Galeria Karstadt Kaufhof ends insolvency proceedings WirtschaftsWoche Article