DUESSELDORF, Jan 8 Reuters German department store giant Galeria could file for insolvency again as early as this week, two people familiar with the matter said on Monday, joining the list of companies affected by the collapse of Signa founder Rene Benko39;s real estate empire.

The insolvency application could come as soon as Tuesday or Wednesday, according to one source. The probability is high, said another person familiar with the matter.

A spokesperson for Galeria, which has already survived two insolvency proceedings, declined to comment. Signa Holdings, the parent company of Galeria39;s Switzerlandbased owner Signa Retail Selection AG, did not respond to requests for comment.

The holding company of Signa a group of some 1,000 companies, with highprofile projects and department stores across Germany, Austria and Switzerland  filed for insolvency last month with around 5 billion euros 5.47 billion in debt.

Other divisions have since followed suit, making Signa the biggest casualty so far in Europe39;s real estate crisis.

For years, the property sector in Germany and elsewhere in Europe boomed as interest rates were low and demand strong.

But a sharp rise in rates and costs has put an end to the run, tipping developers into insolvency as bank financing dries up and deals freeze.

Signa Retail Selection filed for protection from creditors at the end of November and declared its intention to liquidate its portfolio, including Galeria, which was created via the…