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The owners of department store chains Kaufhof and Karstadt and signed a letter of intent on a merger. Canadian trading company Hudson & # 39; s Bay (HBC) and the Austrian owner of Karstadt, Rene Benko, agreed on the merits of the merger, reported Wirtschaftswoche .
Benko's company, Signa, is expected to receive slightly more than half of the shares of the joint venture and be responsible for operational activities. The headquarters of the new company will be located in Cologne or elsewhere in North Rhine-Westphalia, the magazine quoted trading circles as saying. As it is relatively certain that the seat of Karstadt in Essen fall.
The impact of the merger on employees of both chains is, according to the report, not yet fully understood. The administration and the purchase must be merged and the jobs reduced, reported the Wirtschaftswoche citing trading circles. The closure of large-scale stores, however, was not under discussion. There were about 15 branches in the pipeline, which did not work well anyway.
According to a report from Wall Street Journal Hudson Bay will receive 1.1 billion euros from Signa as part of the agreement. Signa takes on debts amounting to 750 million euros. HBC declined to comment, a Signa spokesperson was initially unreachable.
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