High 'Cash Burn': Galeria Stumbles into the Next Crisis - Galeria's financial crisis deepens just two years after relaunch
Galeria is facing fresh financial turmoil just two years after its 2024 relaunch. The department store chain, which runs 83 outlets with around 12,000 staff, now struggles to secure new stock for winter. Without urgent action, another insolvency could follow within months.
The company's troubles deepened as trade credit insurers raised doubts about its stability. Suppliers have grown reluctant to fulfil orders, fearing unpaid bills. Galeria's liquidity must stay above ā¬60 million to maintain these agreements, but funds are running low.
Last year, the retailer showed signs of recovery after its 2024 restructuring. Sales climbed 5% to ā¬2.1 billion, and customer visits rose thanks to stronger online sales and 120 stores. Market share in fashion and department stores grew by 1.2%, while rival Karstadt-Kaufhof stagnated at ā¬1.8 billion. Yet frequent leadership changes, including the exit of its CEO and CFO, disrupted progress.
Now, Galeria is pushing to cut costs by renegotiating leases at eight locations. If talks fail, closures may follow. Industry experts warn that without fresh investment from its new owners, the chain could collapse within months.
The coming weeks will be critical for Galeria's survival. Further store closures and job losses are likely if rent talks stall or funding dries up. Without a rapid turnaround, the retailer's hard-won recovery could unravel entirely.
