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Galeria Karstadt Kaufhof to Close 52 Stores in Restructuring

German Retail Giant Files for Insolvency

Phase-Out Plan Announced

German department store chain Galeria Karstadt Kaufhof has announced plans to close 52 of its current 129 stores in two phases. The closures are part of a restructuring effort initiated as the company recently filed for insolvency.

The first phase of closures will involve 28 stores, while the remaining 24 stores will be shut down in the second phase. The affected locations have not yet been publicly disclosed.

The company had been facing several challenges, including declining sales, competition from online retailers, and high operating costs. The COVID-19 pandemic further exacerbated these issues, leading to the company's insolvency filing.

The remaining 83 stores will continue to operate, and Galeria Karstadt Kaufhof is working to secure financing to keep them going. The company is also exploring strategic options, such as partnerships or a possible sale.

The store closures will result in job losses, with an estimated 6,000 employees expected to be affected. The company is working with unions to mitigate the impact on employees.

The closures will have a significant impact on the German retail landscape. Galeria Karstadt Kaufhof is one of the country's largest department store chains, and its closure will leave a void in many cities.

Analysts are expressing concerns about the future of the remaining stores and the long-term viability of Galeria Karstadt Kaufhof. The company faces an uphill battle to regain profitability and adapt to the evolving retail environment.

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