×
4 258
Fashion Jobs
PAUL SMITH
Showroom Coordinator
Permanent · LONDON
SPORTS DIRECT FITNESS
General Assistant - Everlast Fitness
Permanent · BURY ST EDMUNDS
AVON
Head of Sales Leaders Business Value Stream
Permanent · NORTHAMPTON
FARFETCH
Director of Finance Business Partnering - Marketplaces
Permanent · LONDON
SCHUH
Head of Central Merchandising
Permanent · BATHGATE
PRIMARK
Associate Product Owner, Supplier Effectiveness
Permanent · READING
PRIMARK
Product Owner, Core Retail (Finance)
Permanent · READING
HOLLISTER CO. STORES
Hollister CO. - Brand Representative, New Street
Permanent · Birmingham
GILLY HICKS STORES
Gilly Hicks - Brand Representative, Arndale
Permanent · Manchester
VF INTERNATIONAL
Credit Controller (Strategic Accounts)
Permanent · NOTTINGHAM
L'OREAL GROUP
Credit Controller Apprentice - Manchester
Permanent · Manchester
DR. MARTENS
Assistant Digital & Social Marketing Manager Apac
Permanent · HONG KONG
HUGO BOSS UK LTD.
Warehouse Operations Manager
Permanent · LONDON
HUGO BOSS UK LTD.
Learning & Development Partner (Corporate)
Permanent · LONDON
HUGO BOSS UK LTD.
Project Coordinator
Permanent · LONDON
GANT
Brand Consultant - Part Time - Gant John Lewis Cribbs
Permanent · PATCHWAY
L'OREAL GROUP
Business Category Manager
Permanent · London
L'OREAL GROUP
Lancôme Deputy Business Manager, 1.0, John Lewis, Oxford Street (Ftc)
Permanent · London
L'OREAL GROUP
Senior Visual Merchandising Manager - l'Oreal Paris - Cpd
Permanent · London
L'OREAL GROUP
Advocacy Brand Manager - Cpd
Permanent · London
L'OREAL GROUP
Warehouse Team Leader - am / pm
Permanent · Manchester
L'OREAL GROUP
Corporate Finance Director (Contract)
Permanent · London
By
AFP
Translated by
Nicola Mira
Published
Mar 14, 2023
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

German department store Galeria Karstadt Kaufhof to close 52 branches, 4,000 jobs at risk

By
AFP
Translated by
Nicola Mira
Published
Mar 14, 2023

The iconic German department store chain Galeria Karstadt Kaufhof, will close down 52 of its 129 stores, as announced on Monday by the group, which has been struggling financially for several years.

GALERIA


“After intense negotiations with lessors and city authorities, there is no prospect of continuing to stay open for business," said the group in a press release, referring to 52 of its stores across Germany.

Around 4,000 jobs are at risk because of these closures, as well as 300 employees working at the group’s headquarters in Essen, North Rhine-Westphalia, and in its IT department.

These employees “will be offered the chance to join another company,” said Galeria, which entered a protection procedure in November 2022. A first wave of closures will take place on June 30, followed by another on January 31, 2024.

“It's a dark day for Galeria people,” said the Ver.di (united services) trade union in a statement, calling for “urgent” change in the group’s top management, who have left “employees to foot the bill.”

The cash-starved chain, a counterpart of groups like Galeries Lafayette in France, is also planning to “thoroughly modernise” its remaining 77 stores over the next three years, in order to make them “a popular city-centre meeting point.”

Galeria Karstadt Kaufhof is over a century old, and has been beset by financial difficulties for several years. A result of the pandemic’s impact combined with the waning appetite of German consumers for this kind of outdated generalist store, all but supplanted by multi-brand shopping malls and e-tail giants.

Galeria is now keen to offer “attractive catering options (...) tailoring ateliers, dry cleaning and other services for the general public.” The branches will become more connected, independent and focused on local and regional needs, said the group.

“Department stores have a future in Germany,” said CEO Miguel Müllenbach, at a time of intense competition by e-tail giants like Amazon.

Galeria Karstadt Kaufhof was also hit by rising inflation fuelled by the Russian invasion in Ukraine. The group first filed for bankruptcy in 2020, resulting in the closure of 40 stores and the loss of 4,000 jobs.

Copyright © 2023 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.