Insolvency: Galeria receives important loan – „significantly more room to maneuver“
A loan from Gordon Brothers secures the insolvent department store chain Galeria's supply of goods for the Christmas season. Customers can now also redeem vouchers again.
Düsseldorf – The insolvent Galeria department store chain has secured a significant loan for its Christmas business. The company announced in Düsseldorf that an agreement with US investment firm Gordon Brothers had been signed for a so-called mass loan, a type of credit taken in insolvency proceedings to maintain the operations of a struggling business.
The lender moves up the list of creditors, indicating a relatively low risk. The necessary decisions by the district court and the creditor committee were pending. The agreement is another major step towards stabilizing the company's operations. The financing now stands available to the business, giving Galeria "significantly more room to maneuver".
"This secures the continuous flow of goods," the company statement said. The inspection and release of payments under normal processes can resume. Customers can once again redeem and purchase vouchers. Galeria recently filed for another insolvency petition. The interim insolvency administrator Frank Kebekus intends to review the store network and assess the economic viability of each individual store.
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