German-Swedish financial investor Triton appears to be the sole bidder for insolvent German department-store chain Karstadt. However, according to those who track the market, it is likely to have requested a knock-down price of around EUR 30 mln.

German-Swedish financial investor Triton appears to be the sole bidder for insolvent German department-store chain Karstadt. However, according to those who track the market, it is likely to have requested a knock-down price of around EUR 30 mln.

It is also expected to invest around EUR 60 mln in restructuring the department-store chain, according to market reports. However, this represents a substantial discount to the EUR 150 mln sale price that was expected less than a month ago.

Triton spokesman Max Hohenberg said that Triton would expect ‘greater flexibility’ with regard to restructuring the troubled firm but declined to comment on how many jobs might be cut. ‘There are currently around 5,000 people working in loss-making segments in Karstadt, so we need to restructure those sections. However, that does not mean that all those positions will be cut,’ he told PropertyEU.

There will now be an additional round of talks with individual members of the creditors committee, said Hohenberg, after which the committee will reconvene to decide whether to accept Triton’s offer. The date for the reconvened meeting has yet to be set, he added.

Karstadt rents all its stores in Germany, the majority of which are owned by the Highstreet consortium comprising Goldman Sachs' Whitehall Funds (51%), Deutsche Bank's RREEF funds (24%), Milan-based Pirelli Real Estate (12%), Generali (11%) and the Borletti Group. The investors own a portfolio of 95 properties occupied by Karstadt including 45 Karstadt stores, plus about 50 Karstadt car parks, offices and logistics properties across Germany.

Karstadt's parent company Arcandor was forced into administration last June after the German government rejected calls for both a state loan guarantee and rescue aid.