German Department Stores Karstadt, Kaufhof to Combine
German department store chains Karstadt and Galeria Kaufhof will merge under terms of a “strategic alliance” between Hudson’s Bay Co. (HBC) and Signa Retail Holdings.
Under the agreement, Signa, which operates the 76-store Karstadt, will buy 50.01 percent of HBC’s 97-store Galeria Kaufhof and half interest in HBC’s German real estate. The combined retail operations generate €5 billion in annual revenue. HBC purchased Kaufhof for $2.4 billion in 2014.
HBC has been under shareholder pressure to sell assets. It sold internet fashion retailer Gilt to Rue La La earlier this year and its flagship Lord & Taylor store on 5th Ave. in New York to WeWork Co. in 2017. It also announced plans to close up to 10 Lord & Taylor locations.
Hudson’s Bay Co., Kelly Mader, Chief Business Officer, 905-792-4400