Municipalities sound alarm: German Association of Cities demands say in Galeria store closures

The German Association of Cities (Deutscher Städtetag) is calling for a voice in the decision-making process regarding the potential closure of Galeria department store branches.

Galeria recently announced that it is examining the profitability of 33 of its 83 stores, with the possibility of shutting them down. The company intends to negotiate lease terms and space adjustments with landlords as part of this review.

Christian Schuchardt, the general manager of the Association of Cities, stated that involving affected municipalities in these discussions has proven effective in the past. "In the past, this has proven effective in finding suitable and individual solutions for the locations and for the employees," he told the Funke Mediengruppe newspapers.

The department store chain, which employs approximately 12,000 people, filed for insolvency for the third time in four years in early 2024. This financial distress was partly attributed to the instability of its parent company, Signa. Nine locations were already closed in the summer of 2024. Galeria is now owned by the US investment firm NRDC and a company associated with entrepreneur Bernd Beetz.

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In the past, this has proven effective in finding suitable and individual solutions for the locations and for the employees.