Germany's last department store chain went insolvent three times in four years

Galeria Karstadt Kaufhof was Germany's last remaining major department store chain, formed by the merger of rivals Karstadt and Kaufhof. It operated 92 stores and employed more than 15,000 people. Its owner was Signa Retail Selection, part of Austrian businessman René Benko's trading and real estate empire. Signa was both the shareholder and the landlord: Galeria paid rent to its own owner.

The first insolvency came in April 2020, during the coronavirus lockdown. Galeria shut around 40 stores, cut 4,000 jobs, and received €680 million in German state aid. The second came in October 2022, driven by soaring energy prices, high inflation and weak consumer spending. A third round of closures followed in March 2023. The third insolvency filing came on 9 January 2024 at the Essen court, triggered not by Galeria's own trading but by the collapse of the Signa group itself.

CEO Olivier van den Bossche stated plainly: 'The insolvencies of the Signa Group are damaging Galeria massively, hindering ongoing business and seriously limiting future development possibilities as a result of high rents and expensive services.' Signa had pledged €200 million in restructuring funding that never fully arrived. Sixteen more stores closed by August 2024, cutting 1,400 additional jobs. New owners took over and insolvency proceedings were lifted on 31 July 2024, with more than three-quarters of stores kept open.