Iconic KaDeWe department store in Berlin files for bankruptcy
Date
1/30/2024 7:44:00 AM
(MENAFN) The iconic KaDeWe department store in Berlin, a popular tourist destination, has filed for bankruptcy.
The operator of the prestigious department store has commenced insolvency proceedings, signaling the latest fallout from the crisis impacting one of its parent companies, Signa.
Established in 1907 on Berlin's Wittenberg Platz, KaDeWe, short for Kaufhaus Des Westens, quickly rose to prominence, becoming one of the city's major landmarks alongside the Brandenburg Gate.
In addition to KaDeWe, the KaDeWe Group oversees other renowned department stores such as Oberpollinger in Munich and Alsterhaus in Hamburg.
Signa, which expanded its real estate portfolio by acquiring the KaDeWe Group a decade ago, has encountered financial challenges amid a real estate crisis in Europe. The Austria-based company's recent insolvency filing has further exacerbated the situation.
KaDeWe is owned 49.9 percent by Signa, with the remaining 50.1 percent held by Thailand's Central Group. Central Group, which collaborated with Signa to acquire Swiss retailer Globus in 2020 and Selfridges department stores in the UK the next year, stated that KaDeWe's insolvency would not impact its other holdings.
“Central Group remains committed to providing full support to KaDeWe and its other European luxury stores,” it stated.
KaDeWe stated that the rents in Berlin, Munich, and Hamburg were "exorbitantly high," making it "almost impossible to operate profitably in the long term."
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