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Galeria files for insolvency for fourth time in six years
The German department store chain Galeria has filed for insolvency for the fourth time in six years. Following the application at the Düsseldorf District Court on October 2, a preliminary insolvency proceeding was ordered.
There is significant relief for the company's approximately 11,250 employees, as the Federal Employment Agency (Bundesagentur für Arbeit) has approved the payment of insolvency money. This payment, which is expected to be pre-financed by a bank to ensure rapid distribution, aims to secure wages for up to three months. Monthly payroll costs for the workforce are estimated at nearly 25 million euros.
While the business operations in 83 locations are currently continuing, the long-term future of many stores remains uncertain. Some locations have already reported issues, such as cordoned-off sections and empty shelves. Additionally, customers face uncertainty regarding the validity of existing gift vouchers, which may become claims against creditors during the proceedings.
Entities
ARD · Amtsgericht Düsseldorf · Bundesagentur für Arbeit · DIHK · Deutsche Presse-Agentur · Düsseldorf · Düsseldorf District Court · Edeka · Federal Employment Agency · Frank Kebekus · Galeria · Germany
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Galeria operates 83 department stores in Germany. www.allgaeuer-zeitung.de · www.saarbruecker-zeitung.de · www.volksfreund.de
- [● 5 SOURCES] This is the fourth time Galeria has filed for insolvency within six years. www.allgaeuer-zeitung.de · www.finanzen.ch · www.saarbruecker-zeitung.de · wochentlich.de · www.mannheim24.de
- [● 3 SOURCES] Frank Kebekus has been appointed as the preliminary insolvency administrator. www.allgaeuer-zeitung.de · www.finanzen.ch · www.saarbruecker-zeitung.de
- [● 4 SOURCES] The Düsseldorf District Court ordered preliminary insolvency proceedings for Galeria. www.allgaeuer-zeitung.de · www.finanzen.ch · www.saarbruecker-zeitung.de · www.mannheim24.de
- [● 4 SOURCES] Monthly salaries for Galeria employees amount to nearly 25 million euros. www.allgaeuer-zeitung.de · www.finanzen.ch · www.saarbruecker-zeitung.de · www.mannheim24.de
- [● 4 SOURCES] Galeria filed for insolvency on October 2 due to insolvency. www.allgaeuer-zeitung.de · www.finanzen.ch · www.saarbruecker-zeitung.de · www.mannheim24.de
- [DISPUTED] Galeria employs 11,250 people. www.allgaeuer-zeitung.de · www.finanzen.ch · www.mannheim24.de
- [● 4 SOURCES] The Federal Employment Agency has approved insolvency payments for Galeria employees. www.allgaeuer-zeitung.de · www.finanzen.ch · www.saarbruecker-zeitung.de · www.volksfreund.de