Department store chain Galeria has received a new ten-million-euro credit from minority shareholder Bain Capital. CEO Tilo Hellenbock confirmed this to Handelsblatt. The bridge financing is intended to provide short-term relief for the strained liquidity situation.
In Düsseldorf, Galeria has secured another financing line from Bain Capital. The investor, holding six percent of the shares through several companies, is providing the retailer with a ten-million-euro credit, according to sources close to the company as reported by Handelsblatt. CEO Tilo Hellenbock confirmed the deal when asked.
This is not Bain Capital's first credit to Galeria. Last year, the shareholder had already provided 60 million euros, for which Galeria pays interest of nearly 15 percent, as Handelsblatt reported. The company had declined to comment at the time.
The backdrop is weak sales and severe fluctuations in liquidity, as Hellenbock acknowledged. He remained optimistic, stating that the situation would stabilize and that Galeria plans other measures to improve its liquidity.
