Galeria Considers Closing 33 Outlets Amid Restructuring
The review centers on whether these branches can operate profitably, especially given their rental costs. Cities like Freiburg, Munich, Berlin’s Alexanderplatz, and stores in Cologne and Münster are among those being evaluated. Before closure decisions are made, Galeria first hopes to work with landlords to adjust terms like rent or space size. If no sustainable agreements are reached, these stores may be shut down.
Talks with property owners have already begun in some areas and are expected to start soon in others. Tilo Hellenbock, Galeria's managing director, emphasized that each location will be considered separately and without bias. He said, "We will look at each location individually and with an open mind." The company stressed that all its branches must remain economically viable.
This initiative is part of a larger restructuring strategy. Galeria has secured a 160 million euro loan from the US investment firm Gordon Brothers, which supports the ongoing financial reorganization. The loan comes with the requirement that the restructuring plan succeed, and this includes the possible closure of more stores. In addition to the current 33 locations under review, the company will look into optimizing the remaining 50 stores. Galeria also plans to assess whether relocating or opening new stores in better locations could help the business.
The full list of locations under consideration includes cities like Baden-Württemberg’s Freiburg and Heilbronn, Bavaria’s Aschaffenburg and Munich, Berlin’s Kurfürstendamm and Spandau, and North Rhine-Westphalia’s Euskirchen, Kleve, Cologne, and Münster. Other areas include Hesse’s Bad Homburg and Limburg an der Lahn, Mecklenburg-Western Pomerania’s Wismar, Lower Saxony’s Braunschweig and Oldenburg, and more. The exact timeline for closures or decisions is not clear, but Galeria aims to ensure the long-term survival of its operations.