Galeria files for insolvency in Düsseldorf court as 12,000 retail jobs face risk
German department store chain Galeria has filed for insolvency at the Düsseldorf district court, affecting 83 operating stores and roughly 12,000 employees.
Filing in Düsseldorf
German department store chain Galeria submitted an application to open insolvency proceedings at the District Court in Düsseldorf on 2 October 2026. The company stated to the Deutsche Presse-Agentur that business operations across its 83 remaining branches will continue for the time being. Approximately 12,000 employees face uncertainty regarding their positions, with clarity still pending on whether they will receive insolvency benefits (Insolvenzgeld) and which locations might face closure. The future of individual department stores, such as the branch on Brandenburger Strasse in Potsdam, remains unconfirmed. Management stated that the filing creates the necessary structure to stabilize the business.
The application creates the legal framework to organize the current situation, stabilize the company, and create the prerequisites for a sustainable future for Galeria.
Previous restructurings and ownership changes
The filing represents Galeria's fourth insolvency proceeding within six years, following earlier filings in 2020, 2022, and 2024. During those prior restructuring processes, creditors agreed to waive billions of euros in claims, leading to repeated rounds of branch closures and staff layoffs. The previous insolvency occurred roughly two and a half years earlier under the corporate identity Galeria Karstadt Kaufhof, which followed the collapse of its former parent company Signa. That proceeding resulted in the closure of nine out of 92 department stores. In summer 2024, US investment company NRDC and an investment vehicle belonging to German entrepreneur Bernd Beetz took ownership of the business, shifting its corporate headquarters from Essen to Düsseldorf and dropping Karstadt and Kaufhof from the brand.
Rent arrears and Gordon Brothers loan facility
Fresh financial strain emerged in April 2026 when several commercial landlords reported missing rent payments. Galeria management acknowledged the issue, citing liquidity fluctuations and confirming that it had asked landlords for rent deferrals. In June 2026, the retailer arranged a new financing package from US investment company Gordon Brothers, a specialist in asset valuation and retail liquidations. Source reports place the value of this credit line at around 140 million euros or up to 160 million euros. The credit facility was secured against Galeria's merchandise inventory, tied to a three-year turnaround plan that envisaged further store closures, and used to retire an existing loan from US investment firm Bain while clearing landlord arrears.
- First insolvency proceeding initiated
- Second insolvency proceeding initiated
- Third insolvency proceeding follows the collapse of parent company Signa
- NRDC and Bernd Beetz acquire Galeria and move headquarters to Düsseldorf
- Landlords report missing rent payments
- Gordon Brothers provides inventory-backed credit financing
- Galeria puts 33 stores under review for lease renegotiations
- Fourth insolvency filing submitted to Düsseldorf district court
Inventory shortages and liquidity shortfall
Because much of the June financing flowed immediately into debt repayment and rent arrears, Galeria entered the lower-sales summer months with low cash reserves. Inventory shortages left store shelves empty, contributing to subdued trading across the network. Internal reports for the 2025/26 financial year recorded a revenue drop of approximately 10% and a decline in gross profit exceeding 12%. In July 2026, Galeria placed 33 stores under review to renegotiate leasing contracts with landlords. Meeting August payroll presented difficulties, and disbursing September salaries pushed liquidity below the contractually specified minimum threshold of 20 million euros. Negotiations with owners regarding fresh equity injections concluded without an agreement.
