Retail: The changing owners became "very rich": How investors have been exploiting Galeria for years
What is now called Galeria was once around 300 department stores with more than 160,000 employees. Then came owners who had a completely different business in mind instead of trading in goods.
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.
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