All divisions of insolvent German retail group Arcandor, including department store chain Karstadt and mail order business Primondo, are capable of remaining in the business and may not have to be closed down.
According to reports, the German administrator of Arcandor is in talks with eight interested parties for Primondo. It is understood that talks to sell department store division Karstadt have not yet started. The administrators plan to divest the Karstadt chain as a whole — probably in an auction — without breaking out luxury stores Oberpollinger, KaDeWe and Alsterhaus.
Karstadt has been targeted by German retail giant Metro, which wants to merge the chain with its Kaufhof department stores.
Loss-making Primondo is understood to have been targeted by Otto Group, Germany’s largest mail order business, which operates Freemans and Grattan in the UK.
Arcandor, which filed for insolvency in June, ended its search for an “anchor” investor last week to keep the business afloat, which led to speculation that a break up of the company was a likely option for the business.