Berggruen, BCBG Max Azria team up to bid on bankrupt Arcandor unit

By Caroline Salls

Pittsburgh, May 26 - Nicolas Berggruen direct investment vehicle Berggruen Holdings and BCBG Max Azria Group have formed a strategic partnership in a bid to acquire Arcandor AG subsidiary Karstadt out of bankruptcy, according to a news release.

Karstadt is a German department store chain. Arcandor filed for bankruptcy in June 2009.

Financial details of the joint venture and the bid were not disclosed.

"We are optimistic about our opportunity to work cooperatively with Karstadt to re-build and enhance the company and to seize on strong prospects within the German retail industry," Nicolas Berggruen said in the release.

"We believe Karstadt suffered significantly under its previous owners, and our joint venture with BCBG Max Azria Group is the ideal partnership to bring a fresh and knowledgeable perspective to the company while protecting jobs for Karstadt's employees."

BCBG Max Azria Group president David Jehan said in the release, "Berggruen's financial expertise and resources, long term investment horizon and commitment to investing in Germany coupled with BCBG's robust procurement network and merchandising expertise will help drive significant value and opportunities for Karstadt, its employees, and customers."

According to the release, Berggruen Holdings and BCBG Max Azria Group are working to ensure that their bid has the support of employees, union representatives and any other stakeholders of the company.

Based in Essen, Germany, Arcandor is a mail order and department store company.

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