What: As of 1st of August, Galeria, will have a new owner and will be off to a fresh start

Why it is important: This is the third time a new future is promised. Let sit back, relax, and watch the show.

The Essen District Court in Germany has terminated the insolvency proceedings for Galeria Karstadt Kaufhof as of July 31, marking the company's exit from its third bankruptcy in three and a half years. This decision follows the approval of a restructuring plan by the creditors in late May.

Insolvency administrator Stefan Deckshaus noted that significant cost reductions have been achieved across various segments of the department store chain, positioning it with a robust economic foundation and substantial liquidity. Deckshaus has requested a grace period of up to 300 days to implement new strategies under the new ownership structure.

As of August 1, Galeria will operate independently under the ownership of NRDC, a US investment company, and an investment company led by entrepreneur Bernd Beetz. This new consortium, which acquired Galeria in April, will continue with the restructuring efforts in collaboration with the existing management team led by Managing Director Olivier Van den Bossche. The focus will remain on modernizing local stores and enhancing customer satisfaction.

Despite saving 83 of its 92 stores, closures were unavoidable due to factors such as high rents and ties to the Signa insolvency network. The most substantial operational change includes relocating the headquarters from Essen to Düsseldorf by early 2025, which will result in approximately 900 job losses while retaining about 12,000 positions.

New start for department store chain Galeria