German billionaire Nicolas Berggruen beat two other bidders for Karstadt this week with a promise to maintain the German department stores and jobs. He may have to ditch many of its products to make a revival work.
Berggruen Holdings Ltd., the investment company that’s bidding for Germany’s Karstadt, wants the landlords of the insolvent department store chain to cut rents to aid the retailer’s long-term survival.
Metro AG said it’s discussing the sale of its Kaufhof department-store chain with both Signa Holding GmbH, an Austrian real-estate company backed by Greek billionaire George Economou, and the owner of rival Karstadt.
Billionaire Nicolas Berggruen and two Portuguese partners plan to spend as much as 300 million euros ($413 million) this year on rundown buildings in Portugal as the country’s real estate market rebounds.