Green light
October 1, 2010
The bankruptcy process of Germany's Karstadt department store chain has come to an end, ending months of negotiations by the company's new owner, German-American billionaire Nicolas Berggruen.
Late on Thursday, the final remaining sticking points in the bankruptcy process were retracted by Karstadt's creditors, effectively giving the deal a final green light.
"Today marks a turning point in the history of Karstadt," Berggruen said of the news.
According to Karstadt's new business manager, Thomas Fox, not a lot will change at Karstadt stores under the new ownership. Most of Karstadt's 25,000 employees will keep their jobs, he said.
However, many of the 120 stores in Germany are in need of renovation, and plans have to modernize the assortment of goods Karstadt stores will carry.
Karstadt's former parent company, Arcandor, filed for bankruptcy protection in 2009. Since then, the future of the retail chain has often been in peril as Berggruen worked to find a solution for taking over the company.
Author: Matt Zuvela (dpa, dapd, AFP)
Editor: Chuck Penfold