German KaDeWe Files for Insolvency to Escape Signa Rents – The Business of Fashion

The collapse of Rene Benkos real estate empire is spreading to his luxury retail assets, with department store operator KaDeWe Group filing for insolvency in Berlin.

KaDeWe, which runs the eponymous department store in Berlin as well as high-end outlets in Munich and Hamburg, was forced to apply for a self-administered insolvency to uncouple from the high rents it has to pay, the company said in a statement on Monday.

KaDeWe pays rents to a unit of Benkos Signa organisation, which handles its stakes in the operating company and its underlying property separately.

While the stores are operationally healthy, the rental burdens are harming profitability, chief executive officer Michael Peterseim said. Numerous discussions with the landlord …

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