German department store giant Galeria has filed for insolvency again, marking the fourth time the retailer has entered insolvency proceedings since 2020.
The company submitted its application to the Düsseldorf District Court on Friday, October 2.
Germany's DPA news agency reports that Galeria intends to keep all 83 remaining department stores open for the time being while the company attempts another restructuring.
Around 12,000 employees now face renewed uncertainty over their jobs.
Will Galeria stores close?
For now, Galeria says its stores will continue operating.
The company said the insolvency filing provides a legal framework to stabilize the business and create the conditions for a sustainable future.
However, Galeria has not yet announced whether individual stores will eventually close.
MDR reports that questions surrounding possible closures and financial protection for employees remain unresolved.
The uncertainty is significant because Galeria had already announced in July that it was reviewing the profitability of 33 stores and negotiating with landlords over rents and store sizes.
Fourth insolvency since 2020
Galeria's latest crisis comes only about two and a half years after its previous insolvency.
The company filed for insolvency in 2020, 2022 and 2024.
During the previous restructuring, nine of its then 92 department stores were closed.
Galeria now operates 83 stores across Germany.
The company was previously known as Galeria Karstadt Kaufhof, but the historic Karstadt and Kaufhof names were removed from its corporate identity after the latest ownership change.
Since summer 2024, Galeria has been owned by US investment company NRDC and an investment company associated with German entrepreneur Bernd Beetz.
Financial problems returned this year
Warning signs had already emerged months before Friday's insolvency filing.
Several landlords complained about delayed rent payments in April, while Galeria acknowledged liquidity fluctuations and requests to postpone some payments.
In June, the retailer secured financing of up to €160 million as part of a restructuring plan.
Handelsblatt reported on Friday that Galeria's sales had fallen sharply in recent months and that much of the €160 million credit facility may already have been used.
Galeria has not yet publicly provided detailed reasons for the latest insolvency application.
Germany's department stores are disappearing
Galeria's difficulties reflect a much broader transformation of German retail.
According to figures from retail research institute EHI cited by DPA, Galeria Karstadt Kaufhof generated net sales of around €4.5 billion from 174 stores in 2019.
Six years later, Galeria generated about €2 billion while operating fewer than half as many locations.
Traditional department stores have also lost significant market share as consumers increasingly shop online or visit specialized retailers.
The market share of department stores in Germany has fallen from 4.2 percent in 2020 to around 1.2 percent, according to EHI figures cited by DPA.
12,000 workers wait for answers
The immediate concern is now the future of Galeria's approximately 12,000 employees.
No final decision has been announced about which stores could close or how many jobs could ultimately be affected.
For shoppers, the message for now is simpler: Galeria's 83 stores remain open.
But after four insolvency filings in just six years, the latest crisis raises another major question about whether Germany's last large traditional department store chain can find a sustainable way forward.
