Germany: crisis and decreasing inflation mark the pilot agreement signed in retail trade

The largest judicial settlement since after the war. What accelerated negotiations was the announcement of the judicial settlement (Insolvenz) at Karstadt, a true institution for German retail trade. The crisis as well as management mistakes and positioning, led the department stores chain (100) to the edge of cessation of payment. Likewise for Quelle, one of the German heavyweights of mail order selling. As soon as Essen’s commercial court officially announces the judicial settlement, the 30,000 employees of the two companies will enjoy the “Insolvenzgeld” – the equivalent of the entire gross earnings paid for three months by the Federal Employment Agency. Afterwards, some of the employees will probably be laid off and be entitled to a more or less general social plan. Others should keep working in the stores taken over. In Germany, the sad fate of Karstadt, which has been part of the German urban landscape and everyday life for decades, stroke people’s minds.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

yle=”text-align: justify;”>The largest judicial settlement since after the war. What accelerated negotiations was the announcement of the judicial settlement (Insolvenz) at Karstadt, a true institution for German retail trade. The crisis as well as management mistakes and positioning, led the department stores chain (100) to the edge of cessation of payment. Likewise for Quelle, one of the German heavyweights of mail order selling. As soon as Essen’s commercial court officially announces the ju

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Canada: a sustainability due diligence proposal on forced labour submitted for consultation
The facts. On July 27, the Canadian government launched a consultation to introduce mandatory corporate due diligence measures regarding forced labor. It plans to require risk identification, the...
25 August 2026
United Kingdom: trade unions can now use electronic and workplace voting
The news. The provisions of the UK Employment Rights Act 2025 authorising electronic and workplace voting for trade union ballots came into force on Tuesday, 25 August. They apply to trade union...
Netherlands: Uber fined over 800 million euros for automated algorithmic decisions
The news. In a decision dated 17 August, the Dutch Data Protection Authority fined ride-hailing company Uber €825 million for automating decisions regarding driver account deactivations. The...
Portugal: open consultation on the transposition of the Pay Transparency Directive
The news. On 5 August 2026, the Portuguese government published a document proposing a draft text to transpose the EU Pay Transparency Directive as the basis for a public consultation open until...