What: The works council of Galeria Karstadt Kaufhof believes the department store chain has a sustainable future despite the financial troubles of its parent company, Signa Group.

Why it is important: The works council's belief in Galeria Karstadt Kaufhof's viability, despite the parent company Signa's financial struggles, is crucial as it suggests potential for the department store chain's sustainable future and profitability under new ownership, amidst a challenging economic landscape.

Jürgen Ettl, the works council leader, expressed that the insolvency of Signa's core companies could allow Galeria to separate from Signa and its interests, potentially leading to a more positive future under a new owner who prioritizes Galeria's success.

Ettl suggests that Galeria could offer a return of 6 to 17% to a single investor or consortium, assuring a minimum of 3% in challenging times and at least 6% in favorable conditions. This projection is contingent on reducing rents at Signa locations to market levels.

However, Ettl acknowledges that further job cuts at the company's headquarters in Essen are likely unavoidable, despite the difficulty of this decision for the works council. He emphasizes the need for open-mindedness in considering all options for the company's survival.

The broader context involves the financial instability of the Austrian real estate billionaire René Benko's company network, which includes Galeria. The group is facing challenges due to rising interest rates, construction costs, and energy prices, leading to insolvency in several parts of the group.

The works council considers Galeria to be sustainable