What: Retail expert Jörg Funder expects the approval of the restructuring plan for Galeria Karstadt Kaufhof. Creditors, including landlords, suppliers, and the tax office, will vote on the plan, which involves significant concessions but is deemed the only viable option to avoid liquidation.

Why it is important: The approval of this plan is crucial for the survival of Galeria Karstadt Kaufhof, a major player in the retail sector. It will impact thousands of employees and creditors, including key suppliers and landlords. The plan's acceptance would stabilize the business, ensuring continued operations and mitigating extensive financial losses for all parties involved.

Retail expert Jörg Funder anticipates that the restructuring plan for Galeria Karstadt Kaufhof will be approved by creditors during the vote on Tuesday in Essen. The plan, drawn up by insolvency administrator Stefan Denkhaus, requires creditors to make significant concessions, with an expected insolvency rate of 2.5 to 3 percent. If accepted, the plan would prevent liquidation, keep many branches open, and save numerous jobs. The insolvency proceedings have cost 41.2 million euros so far, with potential legal costs rising to 71.2 million euros if the plan is rejected. The restructuring involves a takeover by a consortium of NRDC and BB Kapital SA, with plans to close 16 of 92 branches, affecting 1,400 employees. Approval by the court would lift the insolvency proceedings and allow the handover to new owners by the end of July.

Trade expert expects approval of Galeria rescue plan