Signa’s Galeria Karstadt Kaufhof Files for Creditor Protection

April 1, 2020, 4:15 PM

Signa Holding GmbH’s department store chain Galeria Karstadt Kaufhof filed for creditor protection in Germany after management decided against requesting for state aid.

A court in Essen, Germany, accepted the request, Galeria said in an e-mailed statement. Under creditor protection, the company will be allowed to restructure while its stores remain closed to fight the spread of coronavirus. The lockdown is causing a revenue loss of about 80 million euros ($87 million) per week, according to the statement.

Galeria was considering to apply for German state bank KfW’s 500 billion euro liquidity program, but needed to move fast to ...

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