Karstadt, the embattled German department store group, is bracing itself for significant cost reductions and perhaps store closures, after several managers indicated that further restructuring measures would have to be taken at the company. This came after the abrupt departure of Eva-Lotta Sjöstedt, the company's chief executive, after just five months. She alleged that Nicolas Berggruen, who acquired Karstadt out of insolvency for one euro in 2010, was not providing sufficient support. The chairman of Karstadt's supervisory board told the Frankfurter Allgemeine Zeitung that he was concerned about the profitability of more than 20 department stores, out of a network of 83 stores. Further restructuring measures are to be expected at the company's head office in Essen, and its logistics center. Karstadt Sports is separately controlled by the Signa Gruppe, an Austrian company in the hands of the investor René Benko. It acquired 75.1 percent of the Karstadt Sports stores last year, along with the Karstadt Premium stores. Benko is apparently not interested in purchasing the other department stores – at least not until the business has been cleaned up.

Topics