BCBG in a Bid to Acquire German Retailer Karstadt
BCBGMaxAzriaGroup announced on May 26 it has submitted a bid to acquire a German retailer.
The Los Angeles–based manufacturer and retailer of contemporary women’s fashions joined a partnership with Berggruen Holdings to acquire Karstadt, a 120-store German department-store chain. Karstadt’s parent company, Arcandor AG, filed for bankruptcy in June 2009.
In prepared statements, chiefs of Berggruen Holdings and BCBG stated their respective companies’ strengths could save the struggling department-store chain.
David Jehan, president of BCBGMaxAzriaGroup, stated, “Berggruen’s financial expertise and resources, long-term investment horizon, and commitment to investing in Germany, coupled with BCBG’s robust procurement network and merchandising expertise, will help drive significant value and opportunities for Karstadt, its employees and customers.”
Nicolas Berggruen, founder and president of Berggruen Holdings, said, “We are optimistic about our opportunity to work cooperatively with Karstadt to rebuild and enhance the company and to seize on strong prospects within the German retail industry.” Berggruen declined to disclose the financial details of the partnership or the bid for the German retailer, which employs 25,000 people.
Berggruen Holdings reports net assets of more than $2 billion and has invested in real estate around the world, renewable energy and financial services. It maintains offices in New York and Berlin, as well as Mumbai, Istanbul and Tel Aviv.
Last year BCBG opened six stores in Germany.—Andrew Asch
