Business State aid needed: Galeria Karstadt Kaufhof loses EUR 80...

State aid needed: Galeria Karstadt Kaufhof loses EUR 80 million in sales every week

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.

The TextilWirtschaft-Medien comprise the entire spectrum of fashion reporting and illuminate all facets of the textile and clothing market in all important locations. The TextilWirtschaft (TW) provides decision-makers with relevant industry information anytime and anywhere: weekly in print and on the iPad, daily digitally or personally during an event. More than 35 journalists and correspondents report from the European fashion metropolises about what is happening within the industry – from the product idea to the sales strategy to sales. www.textilwirtschaft.de

The dfv media group based in Frankfurt am Main is one of the largest independent specialist media companies in Europe. With her daughters and participations, she publishes over 100 specialist journals. Many of the titles are market leaders in important economic areas. The portfolio is complemented by just as many digital offers. In addition to information, more than 150 events such as congresses and trade fairs offer the opportunity for intensive networking. The dfv media group employs around 950 people in Germany and abroad and achieved sales of 143.8 million euros in 2018.

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