One of Germany's largest department store chains Galeria files for bankruptcy again

The German department store chain Galeria filed an application to open bankruptcy proceedings with the Düsseldorf district court on October 2. This is the fourth insolvency procedure for the company in the last six years.

According to Tagesschau, all 83 Galeria department stores are to continue operating for now. The company employs around 12,000 people. No personnel reductions or specific new store closures have been announced at this time.

Galeria stated that the court filing is intended to create the legal framework to sort out the current situation, stabilize the business, and prepare the company for continued operation. Specific reasons for the new bankruptcy have not yet been publicly detailed by the company.

The chain's financial problems have been ongoing for several years. After previous procedures, Galeria significantly downsized its business: in 2020, the chain had 171 department stores, compared to the 83 that remain today. During restructuring, dozens of stores were closed and thousands of jobs were cut.

Galeria completed its last bankruptcy procedure in 2024. After that, the chain came under the control of the American investment company NRDC and an investment structure of entrepreneur Bernd Beetz. The new owners expressed their intention to stabilize the company and modernize the stores.

However, in the summer of 2026, new problems emerged. Galeria began assessing the economic viability of 33 of its 83 stores. The company planned to negotiate with landlords for lower rents and changes to the stores' floor areas, warning that without such agreements, some locations might be closed.

At that time, Galeria also secured a credit line of up to 160 million euros from the American investment company Gordon Brothers. The financing was linked to the chain's restructuring plan.

Source: Tagesschau, Tagesschau