Karstadt sells premium stores to Austria's Signa
US-German investor Nicolas Berggruen announced Monday that he is selling the luxury flagship stores and the sports retail outlets of German department store chain Karstadt to Austrian group Signa.
The sale covered a 75.1-percent stake in Karstadt-Premium-Group, which operates Karstadt's KaDeWe store in Berlin, Alsterhaus in Hamburg and Oberpollinger in Munich, as well as 28 Karstadt Sports outlets, Berggruen Holdings said in a statement.
The sale price of 300 million euros ($400 million) would be invested in Karstadt's other 83 department stores, the statement said.
The deal still has to receive regulatory approval.
Berggruen would retain stakes of 24.9 percent in Karstadt-Premium-Group and Karstadt Sports.
"This is my contribution to the group's further recovery and my clear commitment to the department store as a business model," Berggruen said.
He said he would hold on to the 100 percent stake in the core 83 department stores "as we see huge growth opportunities here in the coming years."
Berggruen took over Karstadt in 2010 when the tourism and retail group Arcandor went bust.
© 2013 AFP