Galeria: Surprising property purchase in Freiburg and new profits!

Galeria: Surprising property purchase in Freiburg and new profits!

Despite past challenges in the business environment, the Galeria department store group is optimistic and is pursuing a comprehensive realignment. Loud Textile industry The company is planning to acquire department store properties and has already acquired its first property in Freiburg, for which the contracts have been signed. This step is part of a multi-million dollar acquisition plan to secure future expansion.

The company ran into trouble and filed for bankruptcy in January 2024 after Austrian parent company Signa went bankrupt. In April 2024, a consortium of NRDC Equity Partners and BB Kapital SA took over the department store chain. This takeover led to the deletion of the traditional names Kaufhof and Karstadt, and almost half of the jobs at the Essen headquarters were eliminated. Nevertheless, there apparently are no fears for the future of the company.

Successful restructuring

Since the third bankruptcy in 2024, Galeria has generated profits again through strategic measures. Loud n-tv The group currently operates 83 branches, all of which are in the black. Co-owner Bernd Beetz noted that the branches have been profitable on a monthly basis since October 1, 2024, exceeding internal expectations. This represents a significant turning point for the department store chain, which was last profitable ten years ago.

The expected annual turnover for the current financial year is estimated at almost 2.5 billion euros, compared to around two billion euros in the previous year. This positive development is due to the internal financing of conversion and investment measures. Beetz announced a clearly defined restructuring plan for the next five years to modernize the branch portfolio.

Future plans and investments

The owners have provided an investment budget in the hundreds of millions to implement the necessary adjustments in the branches. Beetz describes Galeria as an “agile, owner-managed company,” which points to the flexibility and innovation required in the current restructuring phase.

In conclusion, despite the turbulent financial history and signs of bankruptcy, Galeria has not only survived, but is also taking strategic steps to look successfully into the future. The focus on real estate acquisition and profitable branches could be the key to the company's sustainable success.