The German supermarket chain is closing 40 percent of its stores

BERLIN — Germany’s last major supermarket chain announced on Monday that it plans to close two-fifths of its branches, months after it filed for insolvency protection for the second time in less than three years.

The long-troubled Galeria Karstadt Kaufhof plans to close 52 of its current 129 stores in two phases, the first at the end of June and the rest at the end of January.

It said it would affect around 4,000 employees at those stores and add another 300 jobs at the Essen headquarters and in other areas such as IT and facilities management.

The company said there was no positive outlook for the businesses to be liquidated due to economic conditions and “local circumstances” and after “intense negotiations” with landlords and city authorities.

The remaining 77 stores will be modernized over the next three years with a selection better suited to local needs and 11,000 jobs will be retained, Galeria Karstadt Kaufhof said in a statement.

The company, which emerged from the merger of rivals Karstadt and Kaufhof several years ago, sought protection from creditors in late October, citing sharply rising energy prices, high inflation and weak consumer spending.

It has already closed about 40 stores and cut about 4,000 jobs after seeking protection during the first coronavirus shutdown in April 2020 and reportedly receiving 680 million euros ($724 million) in government aid.