NRDC Equity Partners, the New York-based parent company of Hudson’s Bay, and BB Kapital SA, the investment firm of businessman Bernd Beetz’s family, have come together to acquire German department store firm Galeria Karstadt Kaufhof GmbH.
The consortium have joined hands as part of Galeria’s insolvency plan, with the company’s administrator expected to submit the plan to the Essen District Court at the end of April, a decision for which is to be made on May 28.
If agreed upon, it would mark the return of both Beetz and Richard Baker, the owner of NRDC, to Galeria, both of whom are old acquaintances of the German department store group.
Hudson’s Bay Company had previously owned Galeria as part of a joint venture with its most recent parent company Signa Retail Holdings, which ultimately took over the entire chain when Hudson’s Bay gradually withdrew from Europe.
Former Coty CEO Beetz, meanwhile, was previously a Galeria supervisory board member, yet he will be returning to the company as designated executive chairman, a role he will take up if the acquisition garners court approval.
In the meantime, insolvency administrator Stefan Denkhaus will retain oversight until possibly the end of July 2024, after backing by the creditors’ meeting.
The companies did confirm that there would be a reduction in the store estate, noting that its head office will also be adjusted to reflect the smaller format with the aim of managing Galeria as a medium-sized company. So far, 70 of the group’s 90 stores are expected to remain open.