Retail: The changing owners got "very rich": How investors have been draining 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 potential strong fourth quarter, the company's crisis is too advanced, with a significant portion of its inventory no longer owned by the company. Many suppliers have an ownership clause, and Gordon Brothers has secured a significant portion of the remaining stock as collateral for a loan, entitling them to 91% of the proceeds.
The company has dwindled to 12,000 employees, down from over 160,000 in its heyday, with only the Freiburg location still under its ownership. Experts blame the company's decline on its various owners, who prioritized real estate interests over the business.
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.
