The creditors' meeting of the Galeria Karstadt Kaufhof department store group, which is struggling to survive, began on Monday in Essen. Almost 40 creditor representatives appeared, said a spokesman for the district court. They will represent a large part of the demands.

The most important item on the agenda of the creditors' meeting is the vote on the insolvency plan drawn up by the company's management, which is intended to point the way to the recovery of the department store giant.

According to media reports, the company management is demanding that landlords, suppliers and other creditors waive claims of more than one billion euros in order to give the group a fresh start. In addition, 47 of the last 129 department stores are to be closed and thousands of jobs eliminated as part of the renovation.

Acceptance of the insolvency plan is considered likely

Despite all the hardships, acceptance of the insolvency plan is considered likely. Because in this way the creditors can hope to get at least a small part of their money back. If the insolvency plan is rejected, on the other hand, according to insolvency experts, there is a threat of the end for the group and possibly a total loss of the receivables.

At the end of last year, Galeria Karstadt Kaufhof sought rescue in a protective shield procedure for the second time in three years. The group cited the consequences of the corona pandemic and the Ukraine war as reasons for this.

A first protective shield procedure, which was initiated in 2020 during the first corona lockdown, brought only temporary relief to the company, despite the closure of around 40 branches, the loss of around 4,000 jobs and the cancellation of more than two billion euros in debt.