Co-owner Beetz criticizes Galeria's insolvency and calls for rapid realignment
Quick Look
Bernd Beetz, co-owner of the insolvent Galeria department store chain, criticizes the management for the fourth bankruptcy filing within six years and calls for a faster transformation with stronger merchandise management, a clear product range strategy and customer-oriented management.
AI-generated summary
Why It Matters
Galeria has filed for bankruptcy four times in six years (2020, 2022, 2024 and again recently). Since summer 2024, the company has belonged to the US investment company NRDC and an investment company owned by Bernd Beetz. The headquarters were moved from Essen to Düsseldorf.
Co-owner Beetz is critical of Galeria's insolvency and is calling for more speed in the realignment. What steps he suggests for the future of the department store.
Bernd Beetz has been one of Galeria's owners for two years. (Archive image) Photo: Fabian Strauch/dpa
Düsseldorf/Berlin. The co-owner of the insolvent Galeria department store chain, Bernd Beetz, criticizes the management around Tilo Hellenbock for filing for bankruptcy and calls for a quick restructuring. Beetz told the “Bild” newspaper that he considered bankruptcy to be avoidable in principle.
"The shareholders took over Galeria in a difficult situation and invested a lot of time, energy and their own capital to give the company a future. The crucial thing would have been to implement the necessary transformation more consistently and quickly," said Beetz. He explained that this requires “in particular stringent goods management, a clear product range strategy and a significantly stronger customer orientation”.
Beetz was optimistic: “A department store can still be successful today - but only if it clearly stands out from the competition and is operationally managed excellently.” Beetz emphasized that personnel decisions must now be made based on the question of who enjoys the greatest trust from creditors, employees, suppliers and possible investors: "It's not about individual people, but about ensuring the best possible leadership for the next phase."
Galeria recently applied again to the Düsseldorf District Court to open insolvency proceedings. For Galeria, this is the fourth insolvency application within six years, following 2020, 2022 and 2024. Business operations in the 83 branches should continue for the time being.
New owners since 2024
As a result of the previous insolvency proceedings, numerous branches have already been closed. The creditors waived claims worth billions in order to enable the department store chain to emerge from the crisis.
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.
Since summer 2024, Galeria has belonged to the US investment company NRDC and an investment company owned by the entrepreneur Beetz. The names Kaufhof and Karstadt disappeared from the company name. Galeria moved its headquarters from Essen to Düsseldorf.
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What to Watch
AI outlook — possibilities, not facts
Under new management, Galeria will implement stringent merchandise management and a clear product range strategy.
Likely · Within months
Personnel decisions at Galeria are made based on the trust of creditors, employees, suppliers and potential investors.
Very likely · Within weeks
Open Questions
- What specific steps is the new management planning for the product range strategy?
- How are creditors, employees and suppliers involved in the restructuring process?
- What financial resources are available to NRDC and Beetz for the transformation?
