Retail: Galeria plummets, changing owners got "very rich": How investors have been fleecing department stores for years
The former success story of Karstadt and Kaufhof is now entering its fourth insolvency under the name Galeria, and it is also a story of entrepreneurial mistakes.
Galeria, formerly known as Karstadt and Kaufhof, is struggling to recover from insolvency. Despite a strong fourth quarter, it is unlikely to save the company. The business has significant issues, including most of its inventory not being owned by the company due to supplier liens and a $million-dollar loan to Gordon Brothers. As a result, the insolvency administrator will only receive 9% of the revenue from sales. The company now has only 12,000 employees, down from a peak of over 160,000.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
