Home » Business » Galeria Karstadt Kaufhof wants Corona compensation from the state

Galeria Karstadt Kaufhof wants Corona compensation from the state

Because of the corona pandemic, numerous shops had to close – including branches of Galeria Karstadt Kaufhof. The insolvent company therefore wants compensation from the state.

Photo series with 12 pictures

The ailing department store chain Galeria Karstadt Kaufhof promise their creditors a “special dividend” – and want for it Compensation from the “public hand”, i.e. the German state. The “Manager Magazin” reports, citing the 40-page insolvency plan.

After the pandemic-related closure of all branches nationwide, Galeria Karstadt Kaufhof got into a serious crisis and had to seek rescue in a protective shield procedure in April. This culminated in insolvency proceedings in self-administration in July.

The chances of success for the lawsuit are low

Since then, the company has tried to reorganize itself – with the assistance of General Manager Arndt Geiwitz. Around 50 branches are likely to close, and thousands of employees will lose their jobs.

The “Manager Magazin” writes of a low three-digit million amount that Geiwitz would like to get from the German authorities. Legal action is also possible. However, the chances of success of such a lawsuit are considered to be low.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.