Galeria files for bankruptcy for the fourth time in six years

Dusseldorf. The ailing department store chain Galeria has applied to the Düsseldorf district court to open insolvency proceedings. The company announced that business operations in the 83 branches will continue for the time being. For Galeria, this is the fourth insolvency application within six years, following 2020, 2022 and 2024.

The application creates the legal framework to sort out the current situation, stabilize the company and create the conditions for a sustainable future, emphasized Galeria in a statement.

When asked, the department store operator initially did not provide any further information about the background. It remains to be seen whether and which locations will have to close. The approximately 12,000 employees were informed on Friday morning and now have to fear for their jobs.

It is unclear whether they will receive bankruptcy money. The Essen district court has not yet lifted plan monitoring for Galeria after the last insolvency. In June, a spokesman for the Federal Employment Agency said: “If a company is still under plan monitoring, it can be assumed with high probability that insolvency money cannot be paid again.” The insolvency of the original insolvency case should no longer continue. However, each test must consider the specific situation individually.

Frank Kebekus has been provisionally named as insolvency administrator. This emerges from an internal communication that Galeria's managing directors sent to the workforce and which is available to the dpa. In it they wrote: “We are convinced that Galeria will have a successful future.” The top priority is to secure salary payments for the next few months. Kebekus is no stranger to Galeria. The Düsseldorf lawyer already supported the insolvency proceedings in 2020 and 2022 as an administrator.

Galeria's general works council initially did not want to comment. “Please understand that we have our workforce in mind first and foremost,” was the response to the request. In a leaflet sent to employees available to the dpa, the committee demanded that management clarify the situation. “The general works council and the economic committee will fight with all available means for the continued existence of the Galeria, i.e. for the preservation of our jobs,” it continued.

A good two and a half years ago, the company, then still under the name Galeria Karstadt Kaufhof, submitted its last application to date. This was preceded by the difficulties of the then parent company Signa.

As a result of the bankruptcy, nine of the 92 department stores had to close. Since summer 2024, Galeria has belonged to the US investment company NRDC and an investment company owned by entrepreneur Bernd Beetz. The names Kaufhof and Karstadt disappeared from the company name. Galeria moved its headquarters from Essen to Düsseldorf.

Almost two years later, the chain hit negative headlines again. In April 2026, several landlords complained about missing rent payments. The management referred to liquidity fluctuations and admitted that they had asked landlords for a deferment.

It was only in June that the department store chain received new loan financing of up to 160 million euros. The money is used, among other things, to repay a current loan and to pay outstanding rent payments. The credit line is provided by the US investment company Gordon Brothers. It is secured by Galeria's goods and is linked to a three-year restructuring plan that includes further closures.

In July, Galeria announced that it would examine 33 department stores and negotiate rental conditions with landlords. Without viable solutions, the continuation of the respective branch would be at risk, it was said. All department stores must operate sustainably and profitably.

Despite great skepticism, retail experts believe that the department store chain's continued existence is still possible under certain conditions. “40 to 50 locations can be continued under the right owner and with a clearly differentiated positioning - but not as full-range retailers as before,” said retail expert Johannes Berentzen to the dpa.

According to the retail research institute EHI, the company's revenues have fallen significantly in recent years, also as a result of the closures. In 2019, Galeria Karstadt Kaufhof achieved net sales of 4.5 billion euros with 174 branches, according to EHI. Six years later, Galeria only had sales of 2 billion euros with less than half of its locations.

The importance of department stores and department stores in retail has declined sharply in recent years. According to EHI, their market shares have fallen from 4.2 percent in 2000 to 1.2 percent most recently. In addition to Galeria, these figures include the Müller and Woolworth retail chains, among others.

There are still smaller providers such as Breuninger, the KaDeWe Group and the Stolz department store. However, an end to Galeria would also mark the end of the era of classic department stores.

Retail in Germany is under pressure due to weak consumer sentiment and growing online retail. According to credit insurer Allianz Trade, the number of retail bankruptcies has reached a ten-year high. Between June 2025 and May 2026, a good 2,600 retailers filed for bankruptcy. More prominent cases have recently been added.

This affected, among others, the non-food discounters Kodi and Mäc Geiz, which closed numerous branches. The decorative chain Depot is ceasing its business operations. The Hellweg hardware store chain will also be liquidated, and several branches will be taken over by other retailers, such as Bauhaus.