Galeria Karstadt Kaufhof’s Insolvency

Galeria Karstadt Kaufhof, Germany’s biggest department store – alongside eight affiliated companies – filed for administrative insolvency earlier this year after announcing they would close 62 out of 172 branches and make 8,000 of the approximately 30,000 employees redundant, Lawyer Monthly reported. The management agreed on the corresponding social collective agreements with the unions Verdi and NGG shortly before the protective shield procedure – which was sought by the company early April due to the impact of Coronavirus – was completed. The Austrian parent company Signa also announced that it would take 366 million euros as a restructuring contribution. The management has now presented a plan to the responsible district court in Essen, which explains the steps towards the desired restructuring, which is aiming to be completed by late autumn. Read more