Corona exacerbated plight: Karstadt, Kaufhof shrinks greatly

The Department store group's Galeria, Karstadt and Kaufhof will close 62 of its remaining 172 branches. "For you not an economic continuation is a good prospe

Corona exacerbated plight: Karstadt, Kaufhof shrinks greatly

The Department store group's Galeria, Karstadt and Kaufhof will close 62 of its remaining 172 branches. "For you not an economic continuation is a good prospect", the company said on Friday. Karstadt and Kaufhof have agreed on a social plan and reconciliation of interests with the works Council and the Verdi trade Union.

Jonas Jansen

economic correspondent in Düsseldorf.

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Reduced up to 6000 full-time places, which could total relate to good 7500 part-time workers. 20 branches of Karstadt Sports is to close, according to reports, a good 100 of 130 travel agencies are the. "The impact of the unpredictable Corona-crisis, and the government-arranged week-long closures of the houses forcing us to cut to all this pain," said the General representative of Karstadt and Kaufhof, Arndt geiwitz. "We know what this means for the affected employees. But this step is without Alternative, because these stores threaten the total existence of the company. Ultimately, it's about to save the company and thus many thousands of jobs.“

The staff in the stores were informed on Friday at noon, for the dismissed employees, there should be a six-month transfer company. For the remaining 25,000 employees of the year negotiated collective bargaining agreement from 1 to. July to re-apply. He had been suspended with the Declaration of protective shield proceedings provisionally, which had criticized Verdi sharp. Instead of salary increases of 0.3 percent this year and a further increase in the coming year for the employees free days.

negotiations with the owners are from

In the days of long negotiations, have moved the parties to the dispute to each other, in a first draft of the restructuring plan to be concluded by 80 goods houses was out of the question. For employees, this is a weak consolation. "The decision of the closure of homes hitting the people hard, you will be swept away existence under the feet," says Stefanie use Berger from the Verdi Federal Board. "We will fight with all our strength for the preservation of the sites and the future of the employees. Since the last word is not spoken yet.“ Use Berger appealed once again to the policy to support the employees, so that "all the possibilities, opportunities and paths that there are, to be exploited in this dramatic Situation," said Berger.

The remediation plan must, however, disagree with the Committee of creditors of the company, which advises on the next Monday. In addition, the future of the Department store group is still in negotiations with the landlords. "The found agreement in the workers area, I very much welcome. Now we need to find promptly a satisfactory solution with the rental companies,“ said administrator Frank kebekus.

the owner is an Austrian billionaire

Galeria, Karstadt, Kaufhof had requested at the beginning of April, a protective shield proceedings in self-administration, after a negotiation of a KfW development Bank had failed to credit, in the amount of 700 million euros previously. Due to the pandemic and the resulting economic downturn, the company expects sales to decrease by up to 1.4 billion euros by the end of the year 2022. Even now, the loss of Sales spent more than 1 billion euros. Last week, the Board of management Chairman Stephan fanderl resigned, the chief financial officer MiguelMüllenbachhat taken over his Post on an interim basis. It is possible that he may continue to make, the court-appointed restructuring specialist, was praised by the Manager in a communication expressly.

Updated Date: 19 June 2020, 20:19

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