Department store chain Galeria files for bankruptcy again

The ailing department store chain Galeria has filed for insolvency proceedings for the fourth time in six years. The company announced this. Business operations in the 83 branches should therefore continue for the time being.

Galeria said the application creates the legal framework to sort out the current situation, stabilize the company and create the conditions for a sustainable future. The company initially did not provide any further information about the background. Which locations will have to close or whether the approximately 12,000 employees will receive insolvency money remains unclear.

After 2020, 2022 and 2024, it is the fourth bankruptcy filing for the department store chain within six years. Numerous branches have already been closed as a result of the previous proceedings. The company, then still called Galeria Karstadt Kaufhof, submitted its last application to date around two and a half years ago. This was preceded by the financial difficulties of the then parent company Signa.

As a result of the bankruptcy, nine of the 92 department stores were closed. The company also passed into the hands of new owners. 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. The company headquarters was relocated from Essen to Düsseldorf.

In April 2026, the Galeria again received media attention after several landlords complained about non-payment of rent. Management referred to liquidity fluctuations. In June, the department store chain received new loan financing of up to 160 million euros. According to the company, the money is used, among other things, to repay a current loan and settle outstanding rental 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 terms with landlords. Without viable solutions, the continuation of the respective branch would be at risk, it was said.