Galeria slips again: emergency loan and more closures

With a new line of credit, Galeria is buying time for a new restructuring phase. Nevertheless, the German department store chain is preparing for further changes to its store network. According to co-owner Bernd Beetz, the situation remains tense despite the financing.

Network under review again

The financing comes from the American investor and restructuring firm Gordon Brothers, which will receive Galeria’s inventory as collateral. The negotiations dragged on for weeks, reports FashionUnited. A report by consulting firm AlixPartners on the retailer’s financial condition was a prerequisite for the commitment.