9/3 Karstadt Department Stores Saved

The German department store Karstadt has been saved from insolvency following months of uncertainty. Billionaire Nicolas Berggruen has finalized a takeover and lower rent for the stores. The 25,000 employees of the Karstadt chain of department stores have had their jobs secured, after months of uncertainty about the future of the retailer. Following 15 months of discussions, all the necessary signatures have been collected on an acquisition deal for Germany's largest department store chain. Karstadt was acquired by billionaire Nicholas Berggruen in June, and he has been working over the past months to secure Karstadt's creditors, which include Valovis Bank and the Highstreet real-estate consortium led by the Goldman Sachs Group. Berggruen had been given the deadline of September 2 by the insolvency court in Essen to get the creditors on board.

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