German department store chain Galeria Karstadt Kaufhof wants to sell its Belgian subsidiary Inno, hoping to gain tens of millions of euros to lower its debts, German media report.
Galeria Karstadt Kaufhof is weighed down by a heavy debt burden and is undergoing a major restructuring in its home market. A possible bonus from selling its Belgian subsidiary would be more than welcome: a sale could raise tens of millions of euros, Handelsblatt reports. For now, the company does not want to confirm or deny the rumours.
Inno is running its own course within the department store group and managed to return to profitability last year. The department store chain with sixteen Belgian branches and a turnover of 314 million euros is therefore not directly involved in Galeria’s insolvency plan, but does serve as collateral for the state loan the group received.