Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
As announced on 18 June 2020, the German department store chain Galeria Karstadt Kaufhof, will close 62 out of its 172 department stores, causing approximately 5,000 to 6,000 job cuts as part of the restructuring programme negotiated between management, works council and trade unions. Galeria Karstadt Kaufhof has been hit hard by the COVID-19 crisis and is expecting a loss of sales of approximately €1.4 billion until 2022, making a restructuring programme necessary, for the company to survive. Cuts will also include 150 employees at headquarters in Cologne and 25 travel agencies as well as the closure of 20 of the 30 Karstadt Sports stores. All affected employees will have access to a social plan and a transfer company, while the remaining employees will have guaranteed employment until 2024.
Currently, Galeria Karstadt Kaufhof has approximately 28,000 employees.
Update 17 July 2020: As announced on 17 July 2020, Galeria Karstadt Kaufhof has will close only 50 department stores. In last minute negotiations with landlords, Galeria Karstadt Kaufhof was able to avoid the closure of 12 stores and save approximately 1,250 jobs - reducing the number of cuts to between 3,750 and 4,750.
Stores in Dortmund, Goslar, Nürnberg/Lorenzkirche, Potsdam, Chemnitz, Leverkusen, Berlin-Lichtenberg, Bielefeld, Alstertal/Hamburg, Leonberg, Nürnberg/Langwasser and Singen will remain open.
Eurofound (2020), Galeria Karstadt Kaufhof, Closure in Germany, factsheet number 101182, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/101182.
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