Overview
- Galeria filed for the opening of insolvency proceedings at the Amtsgericht Düsseldorf on Friday, October 2, 2026, and said trading in its 83 stores will continue for now.
- The company says the petition is intended to create a legal framework to stabilise the business and enable a sustainable restructuring plan.
- Roughly 12,000 employees now face uncertainty over jobs and insolvency-pay protections while 33 stores that were already under review are at heightened risk of closure.
- Galeria secured a Gordon Brothers credit line of up to €160 million in June 2026, but reporters say much of those funds were immediately used to refinance earlier lender obligations and settle landlord claims, leaving little buffer and reportedly causing a breach of a €20 million liquidity covenant after September payroll.
- The case reflects a long-term collapse in Germany’s department-store market after repeated insolvencies and creditor write-offs, and the new procedure could trigger further site and staff reductions that reshape local high streets and supplier payments.