Major German department chain to shut down more stores

Germany's last major department store chain intends to shut 40 percent of its remaining branches, only months after it applied for insolvency for the second time in three years amid worsening customer numbers as a result of inflation.

The Galeria Karstadt Kaufhof chain, which currently employs around 17,400 people across 97 German towns and cities, plans to close 52 of its current 129 stores, putting more than 4,000 jobs on the line, a statement from the company's employee council said on Monday.

It said the retailer is planning the closures in two phases, with the first at the end of June and the rest at the end of January, and described the plans as a "bleak day" for staff members.