What: Creditors of Galeria Karstadt Kaufhof have approved a restructuring plan that will keep 76 of its 92 branches open, paving the way for the department store chain's rescue and future reorganization under new ownership.

Why it is important: The approval of the restructuring plan is crucial for the survival of Galeria Karstadt Kaufhof, a significant player in the German retail market, as it navigates through financial instability and aims to adapt to a rapidly changing retail landscape.

Galeria Karstadt Kaufhof has successfully navigated the final major obstacle in its rescue effort as creditors approved the restructuring plan. This decision allows the department store chain to maintain 76 out of its 92 branches, though many employees will still face job losses. The new owner, Bernd Beetz, has pledged to enhance the shopping experience and instill a new culture within the company. The Essen district court has confirmed the plan, and formal insolvency proceedings are expected to conclude soon, with the transfer of ownership to NRDC and Beetz's holding company slated for July. Despite this progress, significant challenges remain, including competing with retail giants and ensuring long-term profitability. The company will also undergo a rebranding, dropping the names Karstadt and Kaufhof in favor of simply "Galeria." The restructuring plan includes a focus on key product categories and an anticipated investment of up to 100 million euros over the next few years, though experts suggest that more substantial investment is needed to secure the company's future.

Galeria saves itself again - creditors vote for restructuring plan