The group’s chief representative announced severe cuts in the branch network and noticeably fewer employees. However, he did not give specific figures.
According to the plans of General Manager Arndt Geiwitz, the badly hit department store group Galeria Karstadt Kaufhof should be back in the black in three to four years. The prerequisite for this, however, are severe cuts in the branch network and a noticeable reduction in the number of employees, Geiwitz told the “Wirtschaftswoche” and the “Lebensmittel-Zeitung”. He did not give exact figures for the branch closures and job cuts.
“The biggest bloodletting will be in the headquarters,” said the chief representative with a view to the downsizing. However, media reports that half of the 1,200 jobs there were at risk were not correct. That was “too high”. In the branches that the group wants to continue to operate, they will try to pronounce as few layoffs as possible. “We already have too few skilled workers.” Even where Galeria branches close, the employees do not necessarily have to become unemployed. “We are still negotiating with interested parties who want to use the branches. I hope that we will accommodate employees in branches that are scheduled to be closed with the respective buyer.”
How many department stores are on the brink of collapse?
With a view to the planned branch closures, Geiwitz said: “We will part with houses that are permanently making losses. It is not yet clear how many that will be.” Galeria boss Miguel Müllenbach had announced – when the group was seeking rescue in protective shield proceedings in October – that the branch network would have to shrink by at least a third. This means that more than 40 of the 131 department stores are on the verge of collapse.
“I am convinced that the Galeria department stores have a future, even if not in their current form,” said the renovation expert Geiwitz. Galeria will hopefully make a profit again “in three calendar years”, he told the “Wirtschaftswoche”. Previously, there were certainly losses due to the restructuring costs, for example for conversions. In the “Lebensmittel-Zeitung” he spoke of “three to four years”. Galeria owner Signa is ready to provide the necessary 200 million euros if the insolvency plan is approved.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
