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Galeria Secures €160 Million Credit Line as Store Closures Loom

The inventory-backed loan is conditional on a three-year AlixPartners rescue plan set to reassess 83 stores with about 30 flagged for likely closure.

Overview

  • Galeria confirmed on Thursday that it has a new credit line of up to €160 million from US investor Gordon Brothers, secured against its merchandise.
  • A large share of the money will replace existing liabilities, including a reported roughly €80 million loan to Bain Capital, and pay urgent bills such as wages, rents and autumn–winter stock.
  • The financing is tied to a three-year AlixPartners restructuring plan that will review the entire 83-store network and that dpa reporting says has flagged about 30 locations as particularly at risk of closure.
  • The company’s roughly 12,000 employees face renewed job uncertainty and closures could trigger significant costs for social plans, severance and potential landlord compensation.
  • Experts and union leaders say the loan buys only short-term breathing room, while Gordon Brothers’ prior role in past German department-store wind‑downs raises questions about the longer-term outcome.