Galeria's Financial Recovery: Heading Towards Revival a Year After Bankruptcy? - After a year of financial ruin, is Galeria on the road to recovery?
Following its successful emergence from insolvency proceedings in July 2024, the Galeria department store chain is maintaining its presence in key locations and continuing to serve customers. This is evident in the bustling shopping centres such as Galeria Krakowska and Galeria Kazimierz in Krakow, Poland, which remain active and popular with shoppers[2][3].
The past year has seen the redevelopment of 20 Galeria department stores since last summer, with four more planned for 2025. The investment required for modernizing each branch is estimated to be around 20 million euros, according to trade expert Carsten Kortum[4].
In a move aimed at attracting a younger demographic, Galeria has announced plans for further cooperations with brands like Snocks and Copenhagen Studios, and the addition of retailers such as sports equipment retailer Decathlon and discount supermarket Lidl in some branches[5].
The Nuremberg Institute for Market Decisions study, published in February 2025, found that 81% of participants consider department stores as part of an urban center, and almost half find them indispensable[6]. The study also suggests that people's loyalty to department stores is crucial for Galeria's success. Interestingly, it was noted that younger people shop at department stores more frequently, which holds potential for Galeria[7].
Despite a consumer slump affecting many retailers, Galeria is performing better than many competitors. The company's current financial health is strong, as evidenced by the fact that it operates 83 profitable branches[8]. However, specific financial performance or strategic future plans post-insolvency have not been disclosed publicly.
The leadership of Galeria has undergone changes, with Tilo Hellenbock and Christian Sailer now at the helm, and the US investment company NRDC and entrepreneur Bernd Beetz taking over in 2024[1]. The departure of CEO Olivier Van den Bossche, who played a significant role in the positive development of the company during insolvency and restructuring, was announced in the spring[9].
The company headquarters of Galeria is expected to be moved from Essen to Düsseldorf by the end of the year[10]. As Galeria looks positively to the future, its medium-term vision is to increase sales to almost 2.5 billion euros in two to five years[1].
References: 1. [Business Insider](https://www.businessinsider.de/galeria-verschuldet-insolvenz-wieder-gesund-2025-6) 2. [Galeria Krakowska Reviews](https://www.tripadvisor.co.uk/ShowUserReviews-g294414-d321885-r697150191-Galeria_Krakowska-Krakow_Malopolskie_Voivodeship.html) 3. [Galeria Kazimierz Reviews](https://www.tripadvisor.co.uk/ShowUserReviews-g294414-d192046-r697149323-Galeria_Kazimierz-Krakow_Malopolskie_Voivodeship.html) 4. [Handelsblatt](https://www.handelsblatt.com/unternehmen/retail/galeria-modernisiert-ab-20-millionen-euro-pro-filiale-20470560.html) 5. [Retail Detail](https://www.retail-detail.de/nachrichten/galeria-mit-decathlon-und-lidl-neue-mieter-in-eigenen-filialen/) 6. [Nuremberg Institute for Market Decisions Study](https://www.nuremberg-imd.de/en/publications/detail/department-stores-still-an-indispensable-part-of-urban-centers/) 7. [Nuremberg Institute for Market Decisions Study](https://www.nuremberg-imd.de/en/publications/detail/department-stores-still-an-indispensable-part-of-urban-centers/) 8. [Galeria Annual Report 2024](https://www.galeria.eu/investor-relations/reports-and-presentations/) 9. [Retail Detail](https://www.retail-detail.de/nachrichten/galeria-ceo-olivier-van-den-bossche-verlasst-den-konzern/) 10. [Handelsblatt](https://www.handelsblatt.com/unternehmen/retail/galeria-zogt-hauptstandort-aus-essen-nach-duesseldorf-20470520.html)
Community policy and employment policy are crucial components in Galeria's strategic plan for attracting a younger demographic and maintaining its urban center status, as indicated by their partnerships with brands like Snocks and Copenhagen Studios, and the addition of retailers such as sports equipment retailer Decathlon and discount supermarket Lidl in some branches. Furthermore, the strong financial health of Galeria, as demonstrated by the operation of 83 profitable branches, is essential for the implementation of these strategies.
