Business · Companies · 11 hrs ago

Galeria suppliers block sales of some goods as insolvency process continues

Galeria suppliers block sales of some goods as insolvency process continues

German department store chain Galeria has filed for insolvency for the fourth time in six years.

In some of its stores, products including Playmobil and Geox shoes are behind barriers because suppliers have claimed goods that have not been fully paid for.

Those suppliers can keep the goods out of the insolvency estate, so proceeds from their sale do not go toward the company’s debts.

The Federal Employment Agency will provide insolvency pay for 9,650 Galeria employees, with a bank advancing the money.

Galeria operates 83 stores and has 11,250 employees, and at least 30 locations are considered at serious risk.

The pay gives the company and insolvency administrator time to seek investors, but keeping every store open is considered impossible.

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Galeria store noticeSign on blocked goods
This brand is temporarily not for sale
via t-online