Relief at the German supermarket chain Galleria Kaufhof for government support

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Berlin – dpa:


Posted in: Thursday January 28, 2021 – 9:26 AM | Last update: Thursday 28 January 2021 – 9:26 AM

The German news agency (dpa) learned that the German government intends to support the “Galleria Karstatt Kaufhof” chain of stores, the second largest in Europe.

According to the decision of the Economic Stability Fund Committee on Wednesday, the support for the collapsed chain will include stabilization measures in the form of loans worth up to 460 million euros.

The chain, which includes 131 stores, is considered indispensable as attractions to German city centers.

At the same time, the CEO of the chain, Miguel Mullenbach, appeared satisfied with the government’s decision, according to a letter addressed to the chain’s workers and seen by (dpa).

In the letter, Muellenbach said that the emergency loan approved by the government will provide the chain of stores the cash they need over the coming weeks and months.

“We are now continuing the battle,” he added, adding that about 17,000 jobs in the company and an infinite number of other jobs for those working in delivery services and with our partners were at stake due to the chain’s financial crisis.

Muellenbach pledged to return the government loan and its interest and not damage the taxpayers’ money in the chain’s rescue.

According to DPA’s sources, the government support for the chain of stores came in light of many legal conditions and requirements.

The supermarket chain Galleria Karstatt has been hit hard by the coronavirus pandemic.

At the end of last September, it completed its bankruptcy procedures in an attempt on its part to start anew by closing more than 40 branches, writing off about 4000 jobs and forgiving more than two billion dollars in debt.







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