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Rent uncertainty over Karstadt purchase

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Rent uncertainty over Karstadt purchase
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Property group Highstreet has warned Karstadt’s prospective buyer that the German retailer could be liquidated unless a deal is reached quickly on rents.

Creditors have chosen billionaire Nicolas Berggruen as their preferred buyer for the insolvent company.

However he wants bigger rent reductions from Highstreet and the firm, which is the landlord for two thirds of the Karstadt stores, seems unwilling to make further concessions.

On Tuesday, the insolvency administrator, Klaus Hubert Görg, said Berggruen had signed a contract to purchase Karstadt, subject to conditions, including the rent issue, being resolved.