Galeria Karstadt Kaufhof is fighting for state aid – but so far without success. In order to save the department store company with its 28,000 employees and around 170 locations, the owner Signa is apparently also willing to provide “significant financial support”. This is done from an internal paper of the group, which is available to the trade magazine TextilWirtschaft (dfv Mediengruppe). With regard to the forced closings due to Corona, it says there: “Every week we lose more than 80 million euros in sales, while significant costs continue to run.”
According to the one-page letter, the company “is currently in discussions with the banks, among other things, in order to create the extensive prerequisites for the use of state aid funds.” This process, however, “is currently still very bureaucratic and complex. It costs valuable time. “
According to the paper, it is now not just about the 28,000 employees of Galeria Karstadt Kaufhof, but also about tens of thousands of jobs, for example with suppliers, as well as the inner cities in Germany. The partner – ie Signa – “has of course already, as in the past, promised significant financial support and has already provided it.”
Corona is a “very, very big challenge” for Galeria. The paper gives the impression that the reorganization of the department store group was well on its way before Covid-19. The measures initiated had an effect that the company was “de facto debt free”. For the current business year, one had expected “with an Ebitda of more than 100 million euros”.
For the employees, the corona crisis means “painful financial cuts”. You had to take a savings course that significantly reduced the material and personnel costs. “We already had to apply for short-time work for large parts of our workforce”. As can be heard, most employees only get around 85% of their usual monthly salary for March.
A company spokesman did not want to comment on the TW on Sunday when asked about the paper.
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