- The KaDeWe group, along with luxury department stores KaDeWe in Berlin, Oberpollinger in Munich and Alsterhaus in Hamburg, has filed for bankruptcy.
- The company said that supermarkets will continue to operate.
- This move came after many media outlets speculated about it. An application for insolvency proceedings has been filed under self-administration.
The trading company confirmed that rents at the three sites in particular are putting pressure on business. It was said to have made “sustainable and profitable economic activity almost impossible.” The Lamar department store on Vienna's Mariahilferstrasse, which is still under construction, is also part of the bankruptcy.
Companies with good prospects for continuing business operations will usually apply for insolvency under self-administration rather than with the assistance of an insolvency administrator. It is a different type of insolvency law that aims to restructure the company rather than liquidate it.
Signa invested in KaDeWe Group
The bankruptcy of trading company The KaDeWe Group GmbH came just weeks after Austrian investor Rene Benko's Signa network fell into trouble. Signa owns a stake in KaDeWe Group.
50.1 percent of KaDeWe Group belongs to the central group of the Thai Chirathivat family and 49.9 percent to Signa Retail, based in Switzerland, which also includes Galeria Karstadt Kaufhof. Signa Retail announced at the end of November that it would wind down its business in an orderly manner. Galeria Karstadt Kaufhof filed for bankruptcy three weeks ago.
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