INTERVIEW: Berggruen's Karstadt Bid Includes BCBG Partnership

Private investor Nicolas Berggruen's bid for insolvent German retailer Karstadt includes a business partnership with U.S. fashion company BCBG Max Azria, Inc., Berggruen said Tuesday.

BCBG "knows merchandising well, and that at the end of the day is what matters," Berggruen told Dow Jones Newswires in an interview. "Karstadt is a good name with good stores and very good revenues. Like all such retailers they need something fresh, and that's where BCBG comes in."

Berggruen wouldn't discuss financial details of his agreement with BCBG but referred to it as a "proper partnership" in which financial risk would be shared.

BCBG wasn't immediately available for comment.

He promised to invest "as much as needed for his plan to work" but wouldn't provide specific details on his Karstadt bid. The offer has been made through his investment fund, Berggruen Holdings.

Berggruen has been eyeing a deal for Karstadt for months but only publicized his interest in the iconic retail brand last week. BCBG has been conducting its own due diligence in Germany for weeks, he said.

Karstadt's insolvency administrator has until the end of the week to line up a buyer or the company will be broken up. The company's woes intensified last June when parent company Arcandor AG (ACAGF) filed for insolvency after failing to secure government aid.

-By William Launder; Dow Jones Newswires; +49 69 29 725 515; william.launder@dowjones.com

Arcandor (GM) (USOTC:ACAGF)
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