THE WHAT? Yet another German department store is in trouble, with Galeria Karstadt Kaufhof having announced it is to close 40 percent of its outlets, an announcement that comes just months after it filed for insolvency protection for the second time, according to a report by AP News.
THE DETAILS The chain will close 52 of its 129 stores across two phrases in June 2023 and January 2024.
The remaining stores will be rejuvenated over the next three years and tailored to local needs.
Some 4000 employees will be affected by the closures, with a further 300 jobs to be cut at the Essen headquarters and departments such as IT and facility management.
THE WHY? The ongoing challenging economic circumstances in Germany were cited as a reason for the closures, as well as ‘local conditions’ and ‘intensive negotiations’ with landlords and city authorities.