Welcome

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 ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.