KaDeWe Group Files for Insolvency Amid Rising Rents

Despite record sales, the historic German department store operator struggles with 'exorbitantly high rents', but plans to keep stores open and operational.

• KaDeWe Group, operator of some of Germany's oldest and most prestigious department stores, has filed for insolvency due to rising rents and the collapse of its co-owner Signa Holding.
• Despite record sales, the group has been unable to cope with the 'exorbitantly high rents' in Berlin, Hamburg, and Munich, which have risen by almost 37% since the start of the pandemic.
• The group's stores, including KaDeWe in Berlin, the Alsterhaus in Hamburg, and the Oberpollinger in Munich, will remain open and operations will continue unchanged.
• The majority owner of the KaDeWe Group is Thailand’s Central Group, which holds a 50.1 percent stake. The remaining 49.9 percent is held by Signa, which owns and leases the buildings.
• CEO Michael Peterseim believes the group can have a strong future once rents are renegotiated, viewing the filing for administration as an opportunity to align the company for many years to come.

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