In the end, the showdown about Karstadt’s future was a...

In the end, the showdown about Karstadt’s future was a thrilling one between the would-be new owner, Nicolas Berggruen; the receiver, Klaus Hubert Görg; and the creditors of Highstreet, a company that is the landlord of the real estate of the department store retailer. The major dispute was about the fact that Berggruen demanded lower leases from Highstreet as a conditio sine qua non. Highstreet accepted the conditions after Görg threatened to dismember Karstadt and to leave Highstreet with nothing in its hands. Formally, Karstadt is now safe because Highstreet’s creditors accepted Berggruen’s suggestions and the Essen court in charge approved the insolvency plan that Görg turned in. Berggruen’s strategy raises, however, a few issues(more in SGI Europe).