Warenhauskette: Welche Rolle spielt Gordon Brothers bei Galeria?

Galeria, a large retail chain, has seen numerous owners and executives over the past decade, with Gordon Brothers consistently called upon whenever shops were to be closed due to closure. Previously, Gordon Brothers had been a mere service provider, but now they have become the primary lender for the company. As a result, they hold the power to decide the future of the retailer.

Established in 1903 in Boston, Gordon Brothers is a globally active specialist in company financing in difficult situations, specializing in the sale of stores closing and seasonal and overstocked inventory backed by inventory. Galeria has had four bankruptcies in six years and another before that, providing Gordon Brothers with ample work.

The latest bankruptcy was requested on October 2nd, and the decision on the payment for the roughly 12,000 employees was made on the same day. The extent of money exchanged between Gordon Brothers and Galeria during this time is unknown. Gordon Brothers has become the main lender after being called upon to sell stores. The sales processes and systems are not visible to customers, appearing under the company's name.

Gordon Brothers hardly exist in Germany since their processes are not visible. Experts state that a sale like this usually takes three months, depending on the size of the store. The actual financing business is carried out through a separate area, mostly controlled from London. The lender provides credit and takes assets as collateral, in the case of trade companies, inventory.

The value of the inventory determines the size of the credit line, which fluctuates monthly. Fresh goods are more valuable than old stock or leftovers from the previous season. Both the Galeria owner, NRDC, and the management of Gordon Brothers reportedly inquired in the spring if the company would offer asset-based financing, backed by the inventory, to replace Bain Capital, which had previously lent 60 million euros at a 15% interest rate.

The goal was to replace Bain Capital, which had lent 60 million euros at a 15% interest rate. Gordon Brothers decided to become an external financier on the basis of an independent restructuring report. The management of Galeria prepared a restructuring plan that the consulting company Alix Partners reviewed. Alix Partners confirmed the general ability to restructure Galeria, and Gordon Brothers decided to become an external financier on this basis.

The credit line of 160 million euros was set for June 2026, but only about 130 million euros have been used so far, according to undercompany sources. Outflows fluctuated monthly since June, and it is unclear if Galeria will exhaust the 160 million euro upper limit. It is clear, however, that Gordon Brothers agreed that Insolvency Administrator Frank Kebekus can pay suppliers, service providers, and logistics up to October 14th, using the Galeria store sales for the time being.

This money is not a new loan from Gordon Brothers nor from the credit line. Furthermore, it is clear that Gordon Brothers cannot access the depot stock, which belongs to the suppliers until the products are sold by Galeria. Depo stock makes up roughly half of the total inventory, valued at around half a billion euros for Galeria in all 83 stores.

Experts estimate that Gordon Brothers would have access to around 250 million euros in inventory if they took out a 160 million euro credit line. Gordon Brothers now indirectly benefits from the approval of the insolvency payment, as funds become available that would otherwise have gone to wages and salaries. According to insolvency law, Gordon Brothers is entitled to 91% of the proceeds from the inventory.

They now decide whether and how much they will make available to the company to keep it afloat. There is no automatic process that would force Gordon Brothers to take over the sales of closed stores, as stated by several insolvency experts. The decision lies with the Insolvency Administrator. It is unlikely that Gordon Brothers would take over the company itself, even though some experts believe they have done so in the United States.

Regardless, Gordon Brothers will get their profits, says an insolvency expert who does not want to be named. The company, however, is a risk they have taken on.