Galeria is insolvent: Why the stores remain open until Wednesday anyway

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The department store chain Galeria is insolvent – and employees don't know whether they can still count on their salaries. Bridge financing now at least secures the coming days: The stores will remain open until at least Wednesday. This is reported by Handelsblatt.

No decision has yet been made on insolvency pay. Insolvency pay is the government-backed safety net for employees when their employer becomes insolvent. As long as this decision is missing, it remains unclear what happens next with the wages and salaries of Galeria employees.

What is confirmed so far

According to the Handelsblatt report, three things are secured: Galeria is insolvent, a decision on insolvency pay is pending, and bridge financing bridges the coming days. The stores will therefore remain open until at least Wednesday.

What the bridge financing accomplishes

Bridge financing temporarily secures solvency during insolvency proceedings – it bridges the time until a permanent solution is found. In this case, according to Handelsblatt, it covers the next few days. What exactly it covers and how large it is does not emerge from the report.

What remains open

The key question is what happens after Wednesday. If the bridge financing runs out without insolvency pay being approved or another solution found, the situation will become precarious for both employees and the company. The Handelsblatt report deliberately leaves this question open – more information is expected in the coming days.

What you can take away from the report: Galeria is insolvent, operations continue for now, and the next few days will show whether a solution exists – or whether the department store chain is finally facing its end.