What: More than 70 of the current 92 Galeria branches are to be continued under new ownership.

Why it is important: This decision marks a significant step in reviving Galeria from insolvency, indicating a potential stabilization and future growth for the department store chain, which is deeply ingrained in Germany's retail landscape.

Investor Bernd Beetz, in partnership with the US investment firm NRDC, has acquired the insolvent Galeria Karstadt Kaufhof with plans to maintain over 70 stores. This move is part of a broader strategy to reinvigorate the chain, viewed as a staple of the German lifestyle. The decision on the exact number of stores to continue operating will depend on renegotiations of rental agreements, expected to conclude by the end of April. The acquisition agreement, however, is contingent on approval from the Essen District Court and the creditors' meeting scheduled for May 28. The insolvency proceedings for Galeria were initiated last week, marking the company's third bankruptcy in just over three years. The new ownership also plans to relocate the company headquarters, with specifics yet to be determined. Despite the optimistic outlook, job cuts are anticipated, particularly affecting about 450 employees at the company’s headquarters in Essen.

More than 70 Galeria branches are to be continued