Galeria reviews 33 stores: Imminent closures and negotiations with landlords

The background to the ongoing reviews is the continued financial difficulties. At the beginning of 2024, Galeria had already filed for insolvency for the third time within four years. The problems of the parent company Signa were cited among the reasons at the time.

In the summer of 2024, nine Galeria stores had already been closed. In June, it also became known that around 30 of the then 83 stores were considered at risk. According to its own figures, Galeria employs around 12,000 staff members.

Affected locations in the federal states

The locations under review are spread across numerous federal states. In Berlin, the stores at Alexanderplatz, Hermannplatz, Kurfürstendamm, and in Spandau are affected. In North Rhine-Westphalia, Euskirchen, Kleve, Cologne (Breite Straße, Hohe Straße, Nippes), Mülheim an der Ruhr (Rhein-Ruhr-Zentrum), and Münster (Salzstraße) are on the list.

In Baden-Württemberg, Freiburg (Europaplatz), Heilbronn, Mannheim, Offenburg, and Singen are being reviewed. Bavaria is represented by Aschaffenburg, Bayreuth, Memmingen, Munich (Rotkreuzplatz), and Würzburg. From Hesse, Bad Homburg and Limburg an der Lahn are affected.

Further locations on the list are Braunschweig and Oldenburg in Lower Saxony, Potsdam in Brandenburg, Wismar in Mecklenburg-Western Pomerania, Magdeburg in Saxony-Anhalt, as well as Bad Kreuznach, Koblenz, Mainz, and Speyer in Rhineland-Palatinate. In Hamburg, the Eimsbüttel location is named.

New financing and negotiations with landlords

According to its own figures, Galeria has obtained a new credit line of up to 160 million euros. The money comes from the US investment firm Gordon Brothers. The loan is to be used, among other things, to repay a loan from minority shareholder Bain Capital and to settle outstanding rent payments.

According to the company, the funds are tied to a restructuring plan that provides for further store closures. At the same time, Galeria acknowledged liquidity fluctuations and confirmed that it had asked landlords for deferrals.

In recent months, several landlords had complained that rents had not been paid or had been paid only in part. Galeria announced that it intended to negotiate with landlords not only at the 33 named locations, but also at the remaining 50 stores on rental conditions and space adjustments.

The ongoing reviews are part of a comprehensive restructuring course. Should locations be closed, not only employees but also the respective city centers, where the department stores are often considered as draws, would be affected.

Galeria stated that the company would carefully examine the individual locations and only then decide on the further course of action. A spokesperson reiterated that talks with landlords would continue at all locations.

Reactions and open questions

The Verdi trade union had repeatedly warned in the past against further job cuts at Galeria and had demanded social plans and employment security. Concrete reactions to the current list of 33 locations under review were not initially available.

Overall, it is clear that Galeria is in a phase of fundamental restructuring. Both the financing by Gordon Brothers and the ongoing rent negotiations are closely linked to the goal of putting the company on a stable footing in the long term and identifying loss-making locations.

When exactly initial decisions can be expected remained initially open. The company stressed that each store would be considered on its own merits and that no advance decisions had been made. Observers, however, expect that further closures could be announced in the coming months.