Galeria Karstadt Kaufhof: Closure of Cologne branch confirmed

Galeria Karstadt Kaufhof: Closure of Cologne branch confirmed

The insolvency administrator Stefan Denkhaus announced on Saturday that 16 of the 92 Galeria Karstadt Kaufhof branches would be closed, including the Cologne branch on Breite Straße. Branches in Essen and Wesel in North Rhine-Westphalia are also affected by closures. However, the traditional Galeria Karstadt Kaufhof branch on Hohe Straße in the center of Cologne will not be closed. Cologne Mayor Henriette Reker expressed concern about the closure on Breite Straße and criticized the company's business model.

The former Kaufhof branch on Cologne's Hohe Straße was long considered a shaky candidate and closure was already foreseeable. Although the branch is one of the locations with the highest sales in Germany, the situation was classified as at risk due to the above-average rent. The closure of Breite Straße could now lead to greater planning security for Hohe Straße, according to Andree Haack, head of the economic department.

Germany's last major department store group is planning to close 16 of its 92 branches, which will result in around 1,400 employees losing their jobs. Nevertheless, 11,400 employees will continue to be employed. The managing director emphasized the importance of sustainable concepts together with the cities in order to keep the city centers attractive. The decision about the branches was based primarily on sales, purchasing power and rental prices. Despite the current situation, there is still hope for individual branches to continue to operate.

The insolvency of Galeria Karstadt Kaufhof at the beginning of January was the third in three and a half years, with the difficulties being due, among other things, to the insolvency of the Signa Group of the previous owner René Benko. The promise of financial resources for the restructuring of the department store chain was not kept due to the difficulties.