What:  A plan has been approved and should give the new CEO more freedom to transform the company

Why it is important:  Creditors are giving away 98% of the debt of the company, and half of the stores will close.

Galeria Karstadt Kaufhof's rescue plan has been approved by its creditors, bringing the German department store chain closer to safety.

The plan involves a major downsizing, with the closure of around 50 stores and creditors agreeing to drop an estimated 98% of their outstanding claims.

Under the leadership of its new Belgian CEO, Olivier van den Bossche, the company will focus on promising locations, rapid store conversion, digital investments, efficient processes, and localization.

The Belgian subsidiary, Inno, is not impacted by this plan as it has been profitable and not involved in the financial troubles. With the approval, the CEO now has more leeway to steer the company towards a positive future.

Galeria Kaufhof Kardstadt is getting out of trouble