luxury store - Circles: Oberpollinger remains - new rental contract
The continuation of the Munich luxury department store Oberpollinger is secured. For the Kadewe Group's store, a new rental contract was signed with the insolvency administrator of the former owner at market conditions, as reported by the German Press Agency from reliable sources. Kadewe itself was not affected by the agreement. The Kadewe Group commented on the agreement at first without stating anything.
However, this agreement also involves a staff reduction, which primarily affects the administration of Kadewe. Jobs will also be cut in the buildings themselves. According to the information, around 40 jobs of the approximately 1300 will be affected. The Oberpollinger is the second largest of the three houses of the Kadewe Group. It was opened in 1905 and is known today as an upscale department store, even catering to international clientele. Together, the three houses generated a turnover of 728 million Euros in the business year 2022/2023 - the largest share of this came from Kadewe.
Good news for Munich
The Retail Association Bavaria welcomed the development. "This is good news for the retail location Munich and the employees," said Association Managing Director Bernd Ohlmann. The Oberpollinger is "a flagship of the Munich city center," which is known to many customers - both within and beyond the region. Additionally, vacancy was looming otherwise. Commercial properties are not easily rented out.
The Thai Central Group took over the complete business operations of the three luxury department stores in Munich, Hamburg, and Berlin in June. Previously, it held 50.1% of the Kadewe Group. The remaining stake belonged to the broken Signa business conglomerate of Austrian investor René Benko. In January, the Kadewe Group filed for insolvency in self-administration. The business operations in the department stores are running, however.
Both the Oberpollinger and the Alsterhaus in Hamburg fell into the insolvency estate of Signa. Central therefore negotiated with the insolvency administrator about lower rents. For Kadewe in Berlin, this was not necessary. Central had taken over the building itself for a billion Euros according to Senate statements in April.
One of the richest Thai families
The Central Group is a conglomerate owned by the Chirathivat family, who are among the richest families in Thailand. Forbes estimated their wealth in 2023 at $12.4 billion (€11.4 billion).
The group based in Bangkok operates supermarkets, retail chains, hotels, and restaurants. In addition to their stakes in German department stores, Central is also active abroad, for example, at La Rinascente in Italy, Selfridges in Great Britain, and Globus in Switzerland.
- Despite facing insolvency, the luxury department store Oberpollinger in Munich has secured its continuation, as a new lease agreement was signed with the insolvency administrator at market conditions.
- The Retail Association in Bavaria has welcomed the development, with Association Managing Director Bernd Ohlmann stating that this is good news for the retail location in Munich and the employees.
- The Thai Central Group, one of the richest families in Thailand according to Forbes, has taken over the complete business operations of the three luxury department stores in Munich, Hamburg, and Berlin.
- The Central Group, which operates various businesses including retail chains, hotels, and restaurants, had to negotiate lower rents for the Oberpollinger and the Alsterhaus in Hamburg due to their inclusion in the Signa insolvency estate.
- KaDeWe, the second largest of the three houses in the Kadewe Group, is located in Berlin and generates a significant share of the group's annual turnover of 728 million Euros.
- Companies like Lease Agreement and KaDeWe Group are essential players in the retail sector, influencing the market dynamics and the overall economy of cities like Munich, Berlin, and Hamburg.
