March 2, 2024 11:31 am

Iconic Berlin department store declares bankruptcy — RT Business News

Facebook
Twitter
LinkedIn
Pinterest
WhatsApp
Telegram

URGENT: JUST 11 DAYS REMAIN TO HELP SAVE INDEPENDENT MEDIA & ANR, TO ENSURE WE ARE FULLY FUNDED FOR NEXT MONTH,SO LET'S CUT THE BS & GET TO THE POINT - WE WILL BE FORCED LAY OFF STAFF & REDUCE OPERATIONS UNLESS WE ARE FULLY FUNDED WITHIN THE NEXT 2 WEEKS - Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

KaDeWe Group, which runs the eponymous retailer in Berlin and two other high-end outlets in Hamburg and Munich, has filed for insolvency under self-administration, the corporation announced this week.

The company said that while the stores are operationally healthy, it has been “forced” to restructure due to exorbitant rent costs, which “make it impossible to operate profitably.”

The group’s sales in the 2022-2023 financial year reached €728 million ($786 million), the highest in its history and nearly a quarter more than prior to the Covid-19 pandemic. However, rents during that time have spiked by nearly 37%.

“This means that the business is clearly profitable ‘before rent’ – but clearly not ‘after rent’… There is no question that the group can have a strong future with normal rents,” Chief Executive Officer Michael Peterseim said, as cited by Deutsche Welle news outlet.

KaDeWe Group is majority owned by Thailand’s Central Group, and 49.9% owned by Signa Retail, an Austrian-based property empire which itself declared insolvency last year, citing the “severe economic pressure” brought about by interest rate hikes in Europe. Signa also owns the KaDeWe Group buildings, which it leases back to the department stores. According to Central Group, it was unable to reach an agreement on store rents with Signa due to the “intransigent position of the landlord,” Bloomberg reported, citing the Thai company’s statement. It added, however, that it “remains committed to providing full support to KaDeWe and its other European luxury stores.”

KaDeWe’s management said that while the business will undergo restructuring, the stores will continue to operate. However, Bild reported on Friday that entire areas of the department store in Berlin have stopped sales and closed down, with signs informing customers that the stores are closed “temporarily” for technical reasons.

The 116-year-old Berlin KaDeWe or Kaufhaus des Westens, which can be translated as “department store of the West,” is an iconic feature of the city’s commercial and architectural landscape. The store has over 66,000 square meters of retail space, and sells brands including Yves Saint Laurent, Prada, Boss, Lacoste, Chloé and Ralph Lauren. It was once considered the largest in continental Europe and one of the five largest department stores in the world.

For more stories on economy & finance visit RT’s business section

You can share this story on social media:

Source link

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

Original Source: Iconic Berlin department store declares bankruptcy — RT Business News

Support the ANR from as little as $8 – it only takes a minute. If you can, please consider supporting us with a regular amount each month. Thank you.

Let’s not lose touch…Your Government and Big Tech are actively trying to censor the information reported by The ANR to serve their own needs. Subscribe now to make sure you receive the latest uncensored news in your inbox…

Australian National Review is Australia’s first real free and independent press, one with no editorial control by the elite, but a publication that can generate critical thinkers and critical debate and hold those spreading mistruths and deliberate propaganda in mainstream media to account.

News with a difference that will be educational, compelling and create a platform for political and social change in this country and address the real issues facing this country and the world.

Discover more from ANR

Subscribe now to keep reading and get access to the full archive.

Watch Full Documentary

URGENT: JUST 3 DAYS REMAIN TO HELP SAVE INDEPENDENT MEDIA & ANR, SO LET'S CUT THE BS & GET TO THE POINT - WE WILL BE FORCED TO LAY OFF STAFF & REDUCE OPERATIONS UNLESS WE ARE FULLY FUNDED WITHIN THE NEXT 2 WEEKS

Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

Get access to TruthMed- how to save your family and friends that have been vaxx with vaccine detox, & how the Unvaxxed can prevent spike protein infection from the jabbed.

Free with ANR Subscription from $8