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German division retailer chain to close 40% of its retailers

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Germany’s final main division retailer chain has introduced that it plans to shut two-fifths of its branches, months after it filed for insolvency safety for the second time in lower than three years

BERLIN — Germany’s final main division retailer chain introduced Monday that it plans to shut two-fifths of its branches, months after it filed for insolvency safety for the second time in lower than three years.

The long-troubled Galeria Karstadt Kaufhof plans to close 52 of its present 129 shops in two phases, with the primary closing down on the finish of June and the remaining on the finish of January.

It stated that about 4,000 workers at these shops will likely be affected, and that one other 300 jobs will go at its headquarters in Essen and in different areas akin to IT and facility administration.

The corporate stated that, due to financial circumstances and “native circumstances,” and after “intensive negotiations” with landlords and metropolis authorities, there was no Positive outlook for the shops which are to be axed.

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The remaining 77 shops will likely be modernized over the subsequent three years with ranges which are extra tailor-made to native wants, with 11,000 jobs being safeguarded, Galeria Karstadt Kaufhof stated in a press release.

The corporate, which resulted from the merger a number of years in the past of rivals Karstadt and Kaufhof, sought safety from collectors in late October, citing a steep rise in vitality costs, excessive inflation and weak shopper spending.

It had already shut round 40 shops and reduce some 4,000 jobs after in search of safety in the course of the first lockdown of the coronavirus pandemic in April 2020, and reportedly was granted 680 million euros ($724 million) in state support.



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