Einzelhandel: Galeria-Beschäftigte erhalten Insolvenzgeld

Employees of the recently insolvent grocery chain Galeria are receiving insolvency funds from the Federal Employment Agency, according to the Deutsche Presse-Agentur. A spokesperson for the agency, when contacted, initially provided no specifics and instead referred to the provisional insolvency administrator, Frank Kebekus. The insolvency funds are reportedly to be pre-financed through a bank, ensuring they are swiftly paid out and reach the employees' accounts.

This fulfills a prerequisite to continue the business operations temporarily. Earlier reports of this came from "Welt" and "Business Insider". The amount of insolvency funds equals the net salary, paid once for up to three months before the opening of the insolvency proceedings, although it is usually retroactive. The claim to payment only arises upon the opening of the procedure.

However, it can be pre-financed through a bank's claim on the debts. Lastly, the employees had received the September salaries from their employer; they were paid at the end of September. The salaries of Galeria employees reportedly amounted to nearly 25 million euros per month. Recently, insolvency experts had expressed skepticism about the chances for insolvency funds.

The money is funded through an employer's levy. The provisional insolvency proceedings were opened on October 2nd at the Düsseldorf District Court (case number: 502 IN 258/26) – the fourth time within six years. The court subsequently ordered a provisional insolvency proceedings. The business operation in the 83 stores continues for now.

Whether and which locations need to close is still open. Galeria employs 11,250 people, of which about 1,600 work in the food departments and restaurants of the supermarkets. Corporate subsidiaries of the company have also submitted insolvency proceedings.