High 'Cash Burn': Galeria Stumbles into the Next Crisis - Galeria's survival at risk as financial crisis deepens and suppliers pull back
Galeria, the troubled department store chain, is struggling to secure its future as financial pressures mount. With 83 stores and around 12,000 employees, the company faces growing uncertainty over its ability to stock shelves for the winter season.
The retailer's problems have deepened since December, with sales and profits falling sharply. Suppliers are now reluctant to fulfil orders after trade credit insurers raised doubts about Galeria's financial health. The company must maintain at least €60 million in liquidity to meet its insurance agreements, but a rapid cash drain has put this target at risk.
Frequent changes in leadership have added to the instability. Former CEO Olivier van den Bossche and CFO Christian Sailer have both left, while high turnover has also hit lower management levels. If the situation does not improve soon, another insolvency could follow.
To cut costs, Galeria plans to renegotiate lease terms at eight of its locations. Yet even these measures may not be enough to prevent further store closures if finances continue to worsen.
The chain's survival now depends on stabilising its cash flow and securing supplier trust. Without a quick turnaround, Galeria risks deeper cuts to its operations or even collapse. The coming months will be critical for its workforce and future.
