May 22, 2024

It appears that the American businessman wants to make a bid for Galleria Karstadt Kaufhof

As of: April 5, 2024 at 3:58 p.m

According to a media report, American businessman Richard Becker is one of two remaining bidders for the Galleria Karstadt Kufhof. He already owned part of the insolvent department store chain.

Who will take over the management of the bankrupt department store chain Galleria Karstadt Kaufhof? According to a media report, the family office of American businessman Richard Pecker (NRDC) is one of the remaining bidders. The National Development and Reform Commission wants to make a binding offer on Monday, WirtschaftsWoche reported, citing several people familiar with the matter. A spokesman for bankruptcy administrator Stefan Dinkhaus said: “We do not comment on the bidding process.”

Richard Baker is no stranger to the Galleria. Before the merger with Karstadt, he had already been the owner of Galeria Kaufhof for several years through the Canadian retail chain Hudson's Bay Company (HBC), which was part of his portfolio. However, HBC sold the chain to the Signa Group of Tyrolean investor René Benko, who eventually merged the department store groups to form Galeria Karstadt Kaufhof.

Two remaining bidders are “experienced”

Until recently, it was not clear whether there would be any orderly bankruptcy proceedings at the group. However, on Easter Monday, the Essen District Court opened standard insolvency proceedings, according to a statement from the court. Galleria is now in its third insolvency proceedings. Discussions have already been held with potential new owners in advance.

Solicitor Dinkhaus, who was appointed insolvency administrator and had previously only been appointed interim administrator, reported four binding takeover offers at the end of March. The company now wants to finally negotiate a takeover with two bidders “with experience in German retail.” Dinkhaus said he wants to conclude contracts with one of the bidders in April.

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It concerns thousands of employees

At the beginning of January, Galleria Karstadt Kaufhof declared bankruptcy for the third time in just over three years. The defect is the result of the bankruptcy of the Benco Cigna empire, to which Galleria belongs. Some of the department store properties are also part of the insolvent Signa. Galleria president Olivier van den Bosch and Denkhaus want to preserve the group, which currently has about 12,800 employees. There are currently 92 branches of the department store chain.