luxury stores - Circles: Rents for Oberpollinger and Alsterhaus are available
The continuity of the warehouses belonging to the KaDeWe Group, namely Oberpollinger in Munich and Alsterhaus in Hamburg, is secured. For both buildings, a new rental contract has been signed with the insolvency administrator of the former owner, according to information from familiar circles reported by the German Press Agency. The employees were informed in the morning.
Restructuring in Administration
This agreement reportedly comes with a workforce reduction, particularly affecting the administration of the KaDeWe Group. The same applies to the buildings themselves, affecting approximately 40 jobs out of a total of around 1300.
The Berlin KaDeWe is not affected by this agreement. It already has a rental contract.
The KaDeWe Group commented on the agreement at first refusing to comment.
Central Group Takes Over Business Operations
The Thai Central Group had taken over the complete business operations of the three luxury department stores in Munich, Hamburg, and Berlin in June. The KaDeWe Group already owned 50.1% of it.
The remaining stake belonged to the bankrupt Signa-Business Complex of Austrian investor René Benko. In January, the KaDeWe Group had filed for insolvency in self-administration. The business operations in the stores are still running.
Both Oberpollinger in Munich and Alsterhaus in Hamburg fell into the insolvency estate of Signa. Central therefore negotiated with the insolvency administrator for lower rents. This was not necessary for KaDeWe in Berlin. Central had taken over the building itself for a reported one billion Euros in April, according to Senate statements.
Group belongs to one of the wealthiest Families in Thailand
The Central Group is a conglomerate owned by the Chirathivat family, one of the wealthiest families in Thailand. Forbes estimated their wealth at $12.4 billion (€11.4 billion) in 2023.
Based in Bangkok, the group operates supermarkets, retail chains, hotels, and restaurants. In addition to their stakes in German department stores, Central Group is also involved in La Rinascente in Italy, Selfridges in the UK, and Globus in Switzerland.
The Department Stores
Oberpollinger, opened in 1905, positions itself today as a department store with an international clientele. The Hermann Tietz department store, opened in 1912, attracted Prince Charles and Lady Diana 75 years later. The KaDeWe ("Department Store of the West") in Berlin, opened in 1907 near the Kurfürstendamm, became a symbol of consumption and purchasing power in the post-war period.
The three stores generated 728 million Euros in sales in the 2022/2023 business year according to company statements. The KaDeWe had the highest sales revenue.
- The new lease agreement ensures the continuity of KaDeWe Group's stores in Munich, Oberpollinger, and Hamburg's Alsterhaus, as reported by the German Press Agency.
- The agreement includes a workforce reduction, impacting approximately 40 jobs from a total of around 1300, mainly in the administration sector.
- Despite the agreement, the Berlin KaDeWe is not affected as it already has a separate rental contract.
- The KaDeWe Group initially declined to comment on the agreement but later provided more details.
- In June, the Thai Central Group, owned by the Chirathivat family, took over the complete business operations of the three German luxury department stores.
- The Central Group had previously acquired a 50.1% stake in the KaDeWe Group, with the remaining stake belonging to the bankrupt Signa-Business Complex.
- Both Oberpollinger and Alsterhaus fell into the insolvency estate of Signa, leading to negotiations for lower rents with the insolvency administrator.
- Central Group also manages retail chains, supermarkets, hotels, and restaurants in Thailand and has significant stakes in other international department stores like La Rinascente and Selfridges.
