Kaufhof: major clean-up under new owners

imageHudson’s Bay, the Canadian retailer, which agreed to acquire Galeria Kaufhof, the German chain of department stores and its affiliated network of specialty Sportarena stores,  is about to implement major changes. Manager Magazin reports that it is likely that Kaufhof’s long-time chief executive, Lovro Mandrac, will leave the company even before the transaction comes to a close at the end of this month. The same goes for Thomas Fett, chief financial officer, according to the publication.

Furthermore, the Canadians intend to substantially increase the leases for Kaufhof buildings. Hudson’s Bay acquired the real estate from Metro as well and so acts not only as Kaufhof’s owner, but also as its landlord. From now Kaufhof will also have to pay for insurance and buildings maintenance itself, which to date has not been the case. The additional expenses are estimated to be €48 million or about 50 percent of the earnings before interest and taxes projected for the 2015-16 financial year.

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