Essen, Germany - Hertie, a German department-store chain, moved into a new phase of protection from creditors Monday, with a court opening official insolvency proceedings on its debts.

The nationwide retail chain, owned by British private-equity investors, had been struggling even before the recession.

Hertie has said it will try to keep 54 branches functioning after the closure of 19 loss-making stores. It applied in July last year for court protection. A court spokeswoman said the insolvency proceedings phase was being conducted by a court in Essen. (dpa)