German department store chain Galeria is facing the prospect of a fourth insolvency as negotiations for a critical rescue loan appear to be stalling.
The retailer has been in talks with US investment firm Gordon Brothers since April to secure a three-figure million euro credit facility, but the deal has yet to materialize.
Without this capital injection, the company’s liquidity position remains precarious, threatening the viability of its remaining operations.
The delay in securing financing intensifies pressure on Galeria’s management to find an alternative solution before cash reserves are exhausted.
A fourth bankruptcy filing would mark a significant escalation in the retailer’s long-running financial crisis, potentially triggering a more rapid and disorderly wind-down of assets.
Creditors and suppliers are likely to grow increasingly wary as the window for a structured rescue narrows.