NRDC Equity Partners and BB Kapital SA Purchase Galeria Karstadt Kaufhof GmbH Following Insolvency

NRDC Equity Partners, a firm based in New York specializing in investments, together with BB Kapital SA, the family office of Bernd Beetz, has taken on the acquisition of Galeria Karstadt Kaufhof GmbH (Galeria), a notable retail entity.

The joint effort of NRDC Equity Partners and BB Kapital SA aims to secure the purchase and financial backing of Galeria as part of its insolvency proceedings. Stefan Denkhaus, the insolvency administrator representing Galeria Karstadt Kaufhof GmbH from the law firm Boege Rohde Luebbehuesen (BRL), intends to present the plan to the Essen District Court by the end of April, with a vote expected from creditors in late May.

Denkhaus expressed confidence in the consortium’s proposal, citing their entrepreneurial vision, sustainable economic strategy, and demonstrated financial stability as key factors in their selection.

The acquisition leverages Bernd Beetz’s extensive experience in bolstering and expanding German retail brands, coupled with NRDC Equity Partners’ successful track record in long-term investments.

Bernd Beetz expressed optimism about Galeria’s future, emphasizing a commitment to investment, development, and growth within the department store sector. The consortium aims to establish a solid foundation in the upcoming weeks to steer Galeria towards success.

NRDC Equity Partners highlighted the cultural significance of Galeria as more than just a department store, echoing their dedication to providing sustainable value to stakeholders.

BB Kapital SA’s expertise in organizational development and brand management complements NRDC Equity Partners’ strengths in retail infrastructure enhancement, positioning the consortium as a formidable force for Galeria’s future.

Galeria’s insolvency declaration in January 2024 marked a pivotal moment in its restructuring efforts, emphasizing a renewed focus on local engagement and strategic expansion.

Olivier van den Bossche, CEO of Galeria Karstadt Kaufhof GmbH, affirmed the strategic direction set forth by the insolvency proceedings, expressing confidence in the acquisition and its potential to safeguard Galeria’s future.

As part of the acquisition framework, Stefan Denkhaus will continue to oversee company operations until the end of July 2024, pending approval from creditors. Bernd Beetz is designated as Executive Chairman of Galeria, with plans to acquire over 70 stores nationwide.

Bernd Beetz’s extensive background in the retail industry, including leadership roles at Coty Inc. and LVMH Moët Hennessy Louis Vuitton, positions him well to guide Galeria through its next phase of development.

The finalization of rental agreements and the restructuring of Galeria’s head office will play a crucial role in shaping the company’s future trajectory, with a focus on managing Galeria as a medium-sized enterprise.

NRDC Equity Partners received legal counsel from Weil, Gotshal & Manges LLP, while BB Kapital SA was advised by Lupp + Partner.

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