Future of the department store on Ku’damm: Will the Berlin shopping dream remain?

The future of the Galeria department stores in Berlin is becoming increasingly uncertain following the insolvency of the Signa Group. Signa's bankruptcy in November 2022 has already led to announcements of the closure of several branches, including the one at Alexanderplatz. The department store on Kurfürstendamm in Charlottenburg will remain in place for the time being. Signa boss René Benko had original plans to build high-rise buildings on the Ku'damm property, but these plans were abandoned due to the bankruptcy.

However, there are still possibilities of selling the department store and the associated property. On November 5th, the Berlin Senate issued a right of first refusal regulation for the property, which could mean that the state of Berlin could be considered as a potential buyer. On October 25, the Charlottenburg District Court opened the main insolvency proceedings for the project company that owns the property. In the past, after such proceedings were opened, creditors' meetings often took place to discuss the terms of the sale.

Uncertain prospects for department stores

As mein-berlin.net reports, the Galeria department stores in Berlin are severely affected by the insolvency of the Signa Group. The branch on Alexanderplatz has already been sold; The property is now owned by Commerzbank subsidiary Commerz Real. However, it is expected that the department store will continue to operate under new ownership. According to current information, the department store on Kurfürstendamm will remain intact despite the uncertainties.

The Berlin Senate continues to plan to use the right of first refusal regulation for the department store's property, which gives the state the opportunity to actively participate in the future of the department store and real estate development. In addition, it remains unclear which buyers will be considered for the former branches and which savings measures will be taken by the city of Berlin.

The developments surrounding the Galeria department stores are of great importance for the Berlin shopping landscape and raise questions about the future use of the properties.