DUESSELDORF, Germany, June 8 (Reuters) - Property group Highstreet warned Karstadt's prospective buyer Nicolas Berggruen that the insolvent German retailer could be liquidated if no deal is struck soon on rents.
Highstreet -- a rival Karstadt bidder owned by Goldman Sachs , Deutsche Bank and Pirelli Real Estate -- has not reached a rent deal yet with Berggruen, whom creditors picked on Monday as their preferred buyer.
'Highstreet is ready to reduce rents by another 230 million euros ($309 million) in the next five years in addition to the contribution of 160 million euros over three years pledged in the restructuring plan,' a spokesman for the consortium said on Tuesday.
Should this offer -- available to all potential Karstadt buyers -- not be taken up, 'the probability of a Karstadt liquidation rises significantly', he added. 'An agreement with Highstreet is a core component of rescuing Karstadt.'
Berggruen, the billionaire son of a German art collector, has said he wants to save the Karstadt brand and the 25,000 jobs at stake and is asking for further concessions from property owners like Highstreet, which owns about two-thirds of the Karstadt store space.
(Reporting by Matthias Inverardi; Writing by Michael Shields) ($1=.7453 Euro) Keywords: KARSTADT/ (Matthias.Inverardi@thomsonreuters.com; +49 211 388 2242; Reuters Messaging: Matthias.Inverardi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Highstreet -- a rival Karstadt bidder owned by Goldman Sachs , Deutsche Bank and Pirelli Real Estate -- has not reached a rent deal yet with Berggruen, whom creditors picked on Monday as their preferred buyer.
'Highstreet is ready to reduce rents by another 230 million euros ($309 million) in the next five years in addition to the contribution of 160 million euros over three years pledged in the restructuring plan,' a spokesman for the consortium said on Tuesday.
Should this offer -- available to all potential Karstadt buyers -- not be taken up, 'the probability of a Karstadt liquidation rises significantly', he added. 'An agreement with Highstreet is a core component of rescuing Karstadt.'
Berggruen, the billionaire son of a German art collector, has said he wants to save the Karstadt brand and the 25,000 jobs at stake and is asking for further concessions from property owners like Highstreet, which owns about two-thirds of the Karstadt store space.
(Reporting by Matthias Inverardi; Writing by Michael Shields) ($1=.7453 Euro) Keywords: KARSTADT/ (Matthias.Inverardi@thomsonreuters.com; +49 211 388 2242; Reuters Messaging: Matthias.Inverardi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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