As with Quelle and Arcandor – Economy

Two bidders are still in the running to take over the insolvent department store chain Galeria Karstadt Kaufhof. As you can hear, one wants to save around 60, the other even more than 70 of the 92 branches. So it looks like Galeria won’t be broken into every single piece, but at least the core will be preserved. “60 plus x” branches, as insolvency administrator Stefan Denkhaus puts it – that would be a success for him and a sign of life for the department store category, which is often said to be dead.

However, there is some bad news in the good news: No matter whether 60 or 70 – the other Galeria stores will be closed and hundreds, if not thousands, of people will lose their jobs. The buyer, whoever it ultimately is, cannot be blamed for this. His interest in only taking over profitable branches is understandable. However, you don’t have to be a critic of capitalism to find the constant game of Monopoly with Galeria Karstadt Kaufhof and its predecessor companies reprehensible, which certainly did not begin with the ongoing insolvency proceedings.

The parallels to the demise of the Quelle mail order company and its parent company Arcandor 15 years ago are significant. Then as now, the employees, from the cleaning staff to the cashiers to the branch managers, made sacrifices for years that demanded a lot from them personally. Hard-working people gave up the already not very generous standard wages and the wage increases they were entitled to and worked more for less or the same money. All in the hope of making a contribution to saving their jobs and therefore their livelihoods. At the same time, others stuffed their pockets as if there was nothing there: owners, landlords, managers, consultants, even insolvency administrators – everyone cashed in big.

What is Arndt Geiwitz’s reputation as a renovator based on?

Unforgotten is the letter from Quelle heiress and major Arcandor shareholder Madeleine Schickedanz, who, in the middle of the mail order company’s fight for survival, demanded a billion euros – for a peaceful retirement. The game continued at Galeria. A few cashed in at the expense of many. Of course, the name René Benko is the first thing that comes to mind, but that shouldn’t obscure the fact that – after the disastrous failure of the previous owner Nicolas Berggruen – he was initially celebrated by many as a savior.

The greed of super-rich investors manifested itself in horrendous rents for the Galeria buildings. These are a key reason for the ongoing, third insolvency proceedings within a few years. The search for those responsible for the misery also leads to Arndt Geiwitz, insolvency administrator in the first two proceedings. In the second, a year ago he waved through the high rents that will now cost branches and jobs. What is his reputation as a reorganizer and company savior based on? The rescue of the Schlecker drugstore chain had already failed miserably, and his role at Galeria Karstadt Kaufhof appears increasingly diffuse. Twice insolvency administrator, then again in the immediate orbit of Benko and/or other investors – what is he doing there?