Nicolas Berggruen wanted Karstadt out of the crisis, now he is the traditional department store chain renovation ready again. He admits mistakes, but contradicts the accusation of having too little investment in the Group. Karstadt was not a good deal, in terms of its reputation.
The German-American investor Nicolas Berggruen has acknowledged errors in the management of Karstadt, his commitment However, at the same time defended in the department store group. “We’ve really struggled,” he said in an interview with the newspaper “Bild”. “But what is also true: in 2010, we underestimated the need for remediation steps. This was because at the time that we had a complete picture of the situation of the company.
Berggruen was once hailed as Karstadt-saver. The department store chain had, however, continue to struggle with losses and revenue declines. Now accepts the real estate investor Rene Benko. Already at the beginning of next week to take over the control of the 83 branches of the Austrians. The remaining shares in the Karstadt department stores and premium Karstadt sports go Benkos Signa Holding. The purchase price is loud Berggruen Holdings a €
“Karstadt was in much worse shape”
With a view to his joining the Company in 2010 Berggruen said. “We were really convinced that our concept works and the redevelopment without plant closures and job losses is possible. .., We then found that Karstadt was in a much worse condition than we had believed
And the customers have the concept not as accepted as expected “Next Berggruen said:” We have worked with Andrew Jennings one of the world’s best and most respected managers brought in this area to Karstadt. Some say he had too little attention to German culture and shopping habits. This error we chalks us. “
” money was enough because “
At the same time the outgoing investor rejected the allegation that he had no money invested in Karstadt. In the note, he had promised an investment of 65 million euros in his home in 2010, Berggruen replied: “As agreed Karstadt has received this amount as a credit for one year. Since 2010, Karstadt has invested around 400 million euros. Money was therefore enough because … “
With reference to the contributions of the workforce as wage cuts, he added:” We needed this restructuring contributions, because we were convinced that our concept without plant closures and with a two year guarantee of employment only as was realistic. More Articles were then then not necessary. An investment ability are not lacking. It has invested over the years heavily in the business and still Karstadt has so far not managed to return to profitability “
In Video:. Benko takes Karstadt by Berggruen
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