Retail Giant Karstadt Sold for One Euro
ESSEN, Germany – The Austrian real estate investor René Benko acquired the complete Karstadt retail group for one euro. He bought the loss making business from billionaire Nicolas Berggruen who obtained Karstadt four years ago after a bankruptcy.
René Benko subsidiary Signa Holding already owner 75.1% of the Karstadt Sports chain containing of 28 stores as well as the three premium department stores. Signa Holding has now acquired the remaining 24.9% as well as the 83 remaining Karstadt department stores.
Since Karstadt restarted four years ago after the bankruptcy it never made any profit. The sporting goods division of Karstadt generates approximately 20% of the groups turnover of 2.7 billion euros. The sports division retails bicycle brands like Raleigh, Kettler, Puky, Scott and Univega.
According to retail insiders Karstadt has been facing an ongoing decline in its turnover and something had to be done to avoid a new catastrophe. Karstadt employs an estimated 17,000 people.