What: The department store group’s creditors have approved its insolvency plan by a large majority.

Why it is important: The approval paves way for the restructuring of the retail chain and will allow around 12,000 employees to keep their jobs.

Experts have emphasized that is now crucial that the plan be implemented quickly and consistently by leadership.

If the plan had been rejected, the closure of all branches and termination of all employees would have been inevitable. However, the planned closure of 47 branches means around a quarter of of the group’s workforce will be losing their jobs.

The approval of the plan results in creditors receiving only 2 to 3.5% of the money owed to them, forgoing more than 1.3 million euros.

Around 30 Galeria works councils from all over Germany demonstrated in Essen during the meeting, setting up a symbolic coffin with signs that listed the closing branches. There is still uncertainty among employees about the resiliency of future promises, as many experts have stated that they don’t have confidence in the future plans.

Perhaps the last chance for Galeria Karstadt Kaufhof