Galeria Karstadt Kaufhof apparently needs to shut 62 branches

Grocery bag from Galeria Karstadt Kaufhof

The corona disaster has hit the already troubled firm correctly.

(Picture: dpa)

eat It’s unhealthy information not just for hundreds of Galeria Karstadt Kaufhof workers, but additionally for a lot of German metropolis facilities: The final main German division retailer group will shut 62 of its 172 branches, because the German press company discovered from negotiating circles. Which branches are affected remained open at first.

The variety of retailer closures is a minimum of considerably decrease than initially feared. The administration initially even signaled that as much as 80 branches could possibly be closed as a part of the restructuring of the struggling firm. However concessions from landlords and workers apparently prevented even worse.

However that is in all probability solely a small comfort. Based on data from the “Kölner Stadt-Anzeiger”, round 6,000 of the 28,000 workers are more likely to lose their jobs. In lots of the municipalities affected by the closures there may be more likely to be an alarm. Norbert Portz from the German Affiliation of Cities and Cities already warned of the hazard of the desolation of many interior cities when the primary closure plans turned identified in Might. “Galeria Kaufhof Karstadt isn’t just anybody. The malls are systemically essential for a lot of metropolis facilities, ”he instructed the German Press Company. For a lot of structurally weaker interior cities specifically, a lack of malls can hardly be compensated for.

The Verdi union warned on the time {that a} wave of closures at Galeria Karstadt Kaufhof would have an effect far past the corporate. Within the medium time period, tens of hundreds of jobs at different retailers and the attractiveness of total metropolis facilities are additionally in danger.

However the restructuring stress at Galeria Karstadt Kaufhof is big. The retail big had suffered a severe disaster as a result of pandemic closure of all branches and needed to search rescue in a protecting defend process in early April. “We’re assuming a billion loss in gross sales this yr and don’t anticipate clients to buy once more within the coming yr as they did earlier than Corona. That signifies that by the tip of 2022 the loss in gross sales may even improve to round 1.four billion euros in complete, ”Basic Consultant Arndt Geiwitz described the Group’s issues in Might.

Beneath nice time stress

The rescue efforts have been below nice time stress. The group administration should submit a restructuring plan by the tip of the month. Up to now few weeks, the Verdi commerce union, the works council and the administration have been combating bitterly about which sacrifices the staff nonetheless need to make and what cuts the group can do with out.

On Wednesday night, Verdi reported the primary progress: The deliberate ten % employees discount within the present branches and the outsourcing of the products service workforce (WST) have been “topic to a complete resolution from the desk”, it stated.

However the battle for a social wage settlement, a stability of pursuits for the staff affected by the dismissal and a future idea for the group continued. Apparently with success. A corresponding settlement with the works council and unions ought to be signed on Thursday night.

Nonetheless, particulars shouldn’t be launched till Friday. And on the newest then hundreds of workers and lots of municipalities should put together for a life with out Galeria Karstadt Kaufhof.

Extra: 106 Karstadt journey businesses will shut subsequent week

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