Daily Front Row

2010 June 7

BCBG Max Azria Group Buys Karstadt Department Store

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Max Azria
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(NEW YORK) Almost exactly one year after filing for bankruptcy, German-based Arcandor appears to have found a buyer for its best-known retail name: Karstadt, a department store with 90 locations across the country. The buyer? None other than BCBG Max Azria Group, which has reportedly partnered with Berggruen Holdings to buy the company. Several bidders have emerged in the last few months, with Berggruen considered a front runner alongside private equity investor Triton and real estate consortium Highstreet, led by Goldman Sachs. According to German newspaper Bild am Sonntag, Berggruen’s strategy is to pay $85 million and invest another $286 million over the next three years. It is unclear at this point what role the BCBG Group will play in the acquisition. Brands under the BCBG Max Azria Group include Max Azria, Hervé Legér, BCBGeneration, Max Rave, Max and Cleo, Manoukian, and Miley Cyrus & Max Azria.