Just before the all-important Christmas business, dark clouds gather over Germany’s last major department store group, the Karstadt Kaufhof Gallery. Hit by the pandemic, exploding energy prices and consumer restraint, the retail giant is once again threatened by a financial bottleneck. The group has therefore again submitted an application for state aid as the dpa has been confirmed by German government circles.
It is the third time in almost two years that the department store group wants to resort to state aid. In early 2021 and again in early 2022, the company asked for government support because of the effects of the pandemic. The Economic Stabilization Fund (FSM) helped the traditional company in two aid campaigns with a total of 680 million euros.
Initially, there was no information on the amount of aid requested this time. However, it is uncertain whether the department store chain can once again hope for the state’s saving hand. Even previous state aid was controversial. Critics doubted the future viability of the department store’s business model or saw the gallery’s owner, local real estate billionaire Rene Benko, as having a duty to help the staggering giant.