Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Karstadt Plans to Form Three Legally Independent Businesses

May 18 (Bloomberg) -- Karstadt Warenhaus GmbH, Germany’s biggest department store chain, will form three legally independent divisions to improve the company’s performance.

Karstadt will start the separation into a department store, a sports outlet, and a premium business immediately, the Essen, Germany-based company said in an e-mailed statement today. The separation will be completed in the second half.

Karstadt, which entered insolvency procedures in 2009, was acquired by U.S. investor Nicolas Berggruen in September. He has said repeatedly that he sees Karstadt as a long-term investment and has no exit strategy.

“Our shareholder remains fully committed to systematically develop all three divisions on a long-term basis,” Jared Bluestein, chairman of Karstadt’s supervisory board, said in the statement.

Karstadt named Harald Fraszczak as its chief financial officer, in a separate statement. He succeeds the restructuring expert Josef Schultheis, who has been interim chief financial officer of Karstadt since October, according to the statement.

Karstadt’s first department store opened in 1881, during the reign of Kaiser Wilhelm I. Its West Berlin outlet -- Kaufhaus des Westens, or KaDeWe -- was an icon of capitalism during the Cold War.

To contact the reporters on this story: Holger Elfes in Dusseldorf at helfes@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.