Galeria Karstadt Kaufhof: BA pays insolvency money upon opening of insolvency proceedings

German department store chain Galeria Karstadt Kaufhof today filed to reopen insolvency proceedings at the District Court in Essen.

09 Jan 2024 | Press release no.3

Following detailed negotiations with the company and a detailed examination of the conditions, the BA has established that employees will be eligible to receive Insolvency Benefit if insolvency proceedings are reopened.
The insolvency court will decide on the opening of insolvency proceedings. According to Galeria, the application was filed today. The BA will pay Insolvency Benefit to the employees of the company as soon as the insolvency proceedings have been opened. At this stage, employees do not have to take any action to receive Insolvency Benefit.

About Insolvency Benefit

Insolvency Benefit is paid for the last three months of the employment relationship prior to the opening of the insolvency proceedings. It is equivalent to the net salary and is paid up to the amount of the contribution assessment limit for pension insurance. This is currently 7,550 euros in West Germany and 7,450 euros in East Germany.