Central Group Acquires Operations of KaDeWe Group

Germany's three most prestigious department stores are now under Thai ownership following the collapse of the Benko Empire. The luxurious KaDeWe (Berlin), Oberpollinger (Munich), and Alsterhaus (Hamburg) department stores have been acquired by Thailand's Central Group.

Central Group Acquires Operations of KaDeWe Group
Central Group Acquires Operations of KaDeWe Group

Germany's three most prestigious department stores are now under Thai ownership following the collapse of the Benko Empire. The luxurious KaDeWe (Berlin), Oberpollinger (Munich), and Alsterhaus (Hamburg) department stores have been acquired by Thailand's Central Group.

According to a report by Deutsche Presse-Agentur on Friday, the operations of these iconic department stores have been sold to Central Group. The agreement, however, is still subject to certain conditions, including antitrust approvals. The sale price has not been disclosed.

As part of the agreement, Central Group will engage in discussions with the landlords of the Munich and Hamburg stores to negotiate lease terms. In April, Central acquired the KaDeWe building in Berlin for one billion euros, according to the Berlin Senate.

Before the complete acquisition of the operational business, Central Group already held 50.1% of KaDeWe Group. The remaining 49.9% belonged to the collapsed Signa conglomerate of Austrian investor Rene Benko. In January, Signa filed for self-administration bankruptcy, but operations in the department stores continue.

Central Group is a conglomerate owned by the Chirathivat Family, one of the richest families in Thailand. Forbes estimated their wealth at 12.4 billion dollars (11.4 billion euros) in 2023. Headquartered in Bangkok, Central Group operates supermarkets, department store chains, hotels, and restaurants. In addition to their stakes in German department stores, Central Group has investments in La Rinascente in Italy, Selfridges in the United Kingdom, and Globus in Switzerland.

Opened in 1907, KaDeWe ("Kaufhaus des Westens") became a symbol of consumption and purchasing power in the post-war era. Located in the heart of the capital, it offers 60,000 square meters of shopping space. Besides luxury goods enthusiasts, thousands of tourists visit this renowned building daily.

This development marks a significant step in Central Group's international expansion, further solidifying its presence in the global retail market. The acquisition of the KaDeWe Group's operations by a Thai company is a noteworthy move in the retail sector. The future of luxury shopping in Germany will now be influenced by this strategic ownership change, potentially bringing new dynamics to the market.