Galeria Karstadt Kaufhof Files for Insolvency for Third Time

Germany's last major department store chain seeks new ownership amidst financial difficulties and ongoing insolvencies within its parent group.

Galeria Karstadt Kaufhof, Germany's last major department store chain, has filed for insolvency protection for the third time in less than four years.
The company, which currently runs 92 stores and employs over 15,000 people, is seeking a new owner and is in talks with potential investors.
The insolvency follows similar filings by several companies in the trading and real estate group of Austrian businessman Rene Benko, including Signal Retail Selection, Galeria Karstadt Kaufhof's owner.
Galeria Karstadt Kaufhof was formed from a merger of rivals Karstadt and Kaufhof, and has previously shut around 40 stores and cut some 4,000 jobs after seeking protection during the first lockdown of the coronavirus pandemic in April 2020.
Galeria CEO Olivier van den Bossche has stated that the old ownership structure was weighing on the company, with the insolvencies of the Signa Group damaging Galeria massively and hindering ongoing business.