Now that its creditors have approved a restructuring plan for Galeria Karstadt Kaufhof, the new owners can get to work on reviving the German department store chain.
Final hurdle
With the approval of administrator Stefan Denkhaus’ insolvency plan, Galeria Karstadt Kaufhof takes the last hurdle for a relaunch. In July, the company will be transferred to its new owners, the investment funds NRDC from Hudson’s Bay owner Richard Baker and BB Kapital from German entrepreneur Bernd Beetz.
The outlines of the restructuring plan were already known: sixteen stores (of the 92) will close – far fewer than what observers had feared – and 1,400 employees will lose their jobs. The Essen headquarters will move to a smaller location in Düsseldorf. The name will also change to simply Galeria, with the historical brand names Karstadt and Kaufhof disappearing. Under CEO Olivier Van den Bossche, the focus will shift to beauty products, handbags, shoes and lingerie.
Whether all that will be enough to attract more customers again and win the competition with the growing online platforms remains an open question. The new owners have not yet commented on the direction to be taken.
