By
DPA
Published
June 25, 2026
Galeria is catching its breath: The struggling department store chain is receiving a new loan of up to 160 million euros. A spokeswoman told the German Press Agency (dpa) in Düsseldorf on Thursday. According to dpa reports, further store closures are also planned.
The credit line is being provided by the US investment firm Gordon Brothers and is secured by Galeria’s inventory. The negotiations dragged on for weeks. A prerequisite for the approval was a report on Galeria’s financial situation prepared by the management consulting firm AlixPartners. Previously, the “Handelsblatt” and “Wirtschaftswoche” had also reported on the new loan.
The funds are tied to a three-year restructuring plan, which is now set to be implemented. As part of this, the retailer intends, among other things, to assess which locations are profitable and to negotiate rent reductions and more flexible terms with landlords. “We are scrutinising the entire store network, because every store should be economically viable in the future,” says Galeria managing director Tilo Hellenbock. Among other things, the company cites the persistently weak consumer climate in brick-and-mortar retail as the reason for these measures.
Existing loan to be refinanced
About 30 of the current 83 department stores are considered at risk and will be subject to particularly thorough scrutiny. Galeria is likely to have a significantly smaller store network in three years- according to sources familiar with the plans who spoke to dpa. According to Hellenbock, however, the company is also considering reopening stores at former locations.
It remains unclear how much of the new funds will be left over for investments, such as in the stores. The first step will be to repay a loan from minority shareholder Bain Capital. According to reports, the amount involved is approximately 80 million euros.
In addition, there are outstanding rent payments. Several landlords had recently complained that Galeria had not paid rent at all or had paid only part of it. The company attributed this to liquidity fluctuations and acknowledged that it had asked the landlords for a deferral. One landlord told the dpa that the outstanding amounts had since been settled. Elsewhere, however, it was reported that two months’ rent were still outstanding.
In addition, funds are needed to order merchandise for the fall and winter seasons. Most recently, Galeria has been trying to boost sales with major discount campaigns.
Three Insolvencies in Four Years
Further store closures could result in significant additional costs, such as for severance packages and compensation payments to employees, as well as compensation payments to landlords. Back in March, the retail chain had already announced its intention to renegotiate the lease agreements for eight stores. Closures were not ruled out, it was stated at the time.
Galeria employs around 12,000 people. In early 2024, the company filed for insolvency for the third time in four years. One of the reasons for this was the financial difficulties of its parent company, Signa. In the summer of 2024, nine locations were closed. Since then, Galeria has been owned by the US investment firm NRDC and an investment company owned by entrepreneur Bernd Beetz. Following negotiations with landlords, the chain was able to significantly reduce its rent burden.
Gordon Brothers is no stranger to the company’s world. Years ago, the investor organized the clearance sales at Kaufhof and Karstadt stores prior to their closures.
