Galeria is planning major real estate purchases: Freiburg department store in sight!

Galeria is planning major real estate purchases: Freiburg department store in sight!

The Galeria department store group is planning a comprehensive growth strategy that includes the acquisition of department store properties. As a first measure, a property in Freiburg has already been signed. This is part of a multi-million dollar acquisition plan that the company is pursuing despite the current challenges and pressures in the business environment Food newspaper reported.

The latest developments at Galeria are particularly notable as the insolvent department store chain Galeria Karstadt Kaufhof changes ownership again. A consortium consisting of NRDC Equity Partners, a US investment company, and BB Kapital SA led by Bernd Beetz has announced the takeover, which was announced by the insolvency administrator Stefan Denkhaus in Essen. This acquisition affects more than 70 of the 92 existing locations, with the exact number of stores closed dependent on negotiations with landlords.

Future plans and collaboration

Bernd Beetz, the new owner, has already drawn up future plans for the company and emphasizes the crucial role of department stores in retail. Beetz plans to work closely with current managing director Oliver Van den Bossche to steer the company into the future. However, it remains unclear how the shares will be divided between the shareholders. He also announced that Galeria would have immediate access to investments, although the amount was not specified American Express reported.

Nevertheless, the insolvency administrator plans to reduce rents to 7 to 11 percent of sales in order to reduce the economic burden on the department stores. A decision on the future of the locations is expected to be made by the end of April, although the impact on the 12,800 employees is currently unclear. According to reports, around 450 jobs at the company headquarters in Essen are affected by possible reductions.

Expected developments

The general works council is ready to work with the new owners to ensure a coordinated future for the employees. NRDC's Richard Baker specializes in retail companies and already has stakes in major retail brands such as Hudson Bay Company and Saks Fifth Avenue. Bernd Beetz was previously chairman of the supervisory board at Kaufhof during the merger with Karstadt, which gave him valuable experience in the luxury and consumer goods sector.

Despite the critical situation, which was characterized by Bakker's less successful first term at Kaufhof, which led to a decline in sales, the new investors are optimistic. The investor agreement becomes effective as soon as the Essen District Court and the creditors' meeting agree. The vote on the insolvency plan is scheduled for today, May 28, 2025, at Messe Essen, with the insolvency administrator planning to present a detailed plan by the end of April.