Galeria Karstadt Kaufhof closes these 62 branches
| Reading time: 4 minutes
It is the only way to save the company: the department store chain Galeria Karstadt Kaufhof closes more than a third of its branches – there is no perspective for them. It is now known which branches are affected.
JIt is now official: The closure of more than a third of the Galeria-Karstadt-Kaufhof branches is, according to the management, the only way to save the company. “We know what this means for the employees concerned. But this step is without alternative, because these branches endanger the entire existence of the company, ”said the general representative Arndt Geiwitz on Friday. Ultimately, it is about securing the company and thus many thousands of jobs.
The group plans to “close 62 of 172 branches and two so-called bargain centers”. Given the effects of the Corona crisis, there is no longer any prospect of economic continuation for them, Geiwitz emphasized.
However, the number of store closures is somewhat lower than initially feared. The management originally even signaled that up to 80 branches could be closed as part of the restructuring of the struggling company.
Trade giant was hit hard by the pandemic
It was only on Thursday evening that the company, the general works council and the Verdi union agreed on a social plan and a reconciliation of interests. The agreement also includes a transfer company for employees who have to leave the company. In addition, collective agreements were made for the employees who remain in the company.
The court-appointed administrator Frank Kebekus welcomed the agreement with the employees. Now, however, a satisfactory solution had to be found “promptly” with the landlords.
The retail giant had experienced a severe crisis due to the pandemic closure of all branches and had to seek rescue in a protective shield procedure in early April. Galeria Karstadt Kaufhof expects the pandemic and the economic downturn that it triggered to result in sales of up to 1.4 billion euros by the end of 2022.
Norbert Portz from the German Association of Cities and Towns warned of the danger of desolation of many inner cities as soon as the first closure plans became known in May. “Galeria Karstadt Kaufhof is not just anyone. The department stores are systemically important for many city centers, ”he told the German Press Agency. For many structurally weaker inner cities in particular, he believes that a loss of department stores can hardly be compensated for.
The Verdi union then warned that a wave of closings at Galeria Karstadt Kaufhof would have an impact far beyond the company. In the medium term, this would also threaten tens of thousands of jobs at other retailers and the attractiveness of entire city centers.
In Berlin alone, seven branches are to be closed. Governing Mayor Michael Müller (SPD) described this as a “heavy blow”. “The branches are of central importance for local supply and are often the center of life in the city quarters,” he said on Friday on Twitter. “In further talks, the Senate will work to preserve as many jobs as possible and for the Berlin department store location.” Economic Senator Ramona Pop (Greens) had previously made similar comments.
These branches will be closed
Houses in all federal states except Thuringia are affected by the closure. The jobs of around 6000 of the 28,000 employees in the Karstadt department stores (KWH) or at Galeria Kaufhof (GK) are at risk. The affected branches, sorted by federal states:
Munich Am Nordbad (KWH)
Munich OEZ (KWH)
Munich Stachus (GK)
Nürnberg Langwasser (KWH)
Mannheim N7 (GK)
Stuttgart Bad Cannstatt (GK)
Berlin Charlottenburg (KWH)
Berlin Gropius-Passage (KWH)
Berlin Hohenschoenhausen (GK)
Berlin Müllerstrasse (KWH)
Berlin Ringcenter (GK)
Berlin Tegel (not yet opened)
Berlin Tempelhof (KWH)
Hamburg AEZ (GK)
Hamburg Bergedorf (KWH)
Hamburg Mönckebergstraße (GK)
Hamburg Wandsbek (KWH)
Frankfurt Hessen-Center (GK)
Frankfurt Zeil (KWH)
Bargain Center Frankfurt NZW (temporary operation only)
Bargain Center Gießen
Sulzbach MTZ (KWH)
Hannover Georgenstraße (KWH)
Dusseldorf Schadowstrasse (KWH)
Düsseldorf Wehrhahn (GK)
Cologne Weiden (GK)
Mönchengladbach Rheydt (KWH)
Trier Simeonstraße (KWH)