Germany's last major department store chain Galeria Karstadt Kaufhof is set to close 16 of its 92 shops, company sources told dpa on Friday.
Insolvency administrator Stefan Denkhaus will on Saturday announce a rescue plan for the bankrupt group with details of the locations affected and prospective timetables.
Of the approximately 12,800 people employed by the company, 1,400 are set to lose their jobs. Denkhaus recently announced that half of the 900 jobs at the group headquarters in Essen would be cut.
Galeria's new owners, a consortium consisting of US private equity firm NRDC and German entrepreneur Bernd Beetz's BB Kapital SA, face a difficult task in improving the fortunes of a business undergoing its third bankruptcy in the last three and a half years.
Creditors will meet in Essen on May 28 to vote on Denkhaus' rescue plan, which will only become legally binding if it is approved by creditors and subsequently confirmed by a court.
Denkhaus intends to hand over the company to its new owners by the end of July.
According to the German Retail Association (HDE), the number of retail shops in Germany has fallen from 372,000 to 311,000 since 2015, with customers increasingly shopping online.
The association expects a further 5,000 closures this year.