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The German department store chain Galeria is receiving a new loan of 10 million euros from minority shareholder Bain Capital. The funds are intended to help the retailer weather a difficult financial period.
Turbulent period
It recently became clear that Galeria is experiencing liquidity problems following reports of declining sales and overdue rent payments. The retailer has requested a rent deferral for all 83 stores, with rent for March and April to be paid in the fall. Not all landlords have accepted this proposal. Furthermore, sales growth this year appears to be disappointing.
The bridge loan that Bain Capital is now granting is therefore more than welcome. The company, which restarted operations after three bankruptcies, is once again going through a turbulent period, during which CFO Christian Sailer was recently dismissed. The retailer has also indicated that additional store closures cannot be ruled out.
