Berggruen Holdings and BCBG Max Azria Group Form Strategic Partnership in Bid for Karstadt

NEW YORK, PARIS, and BERLIN, May 26 /PRNewswire/ -- Berggruen Holdings, the direct investment vehicle of Nicolas Berggruen, and BCBG Max Azria Group, a leading designer, retailer and distributor of women's apparel and accessories, have formed a strategic partnership in a bid to acquire Karstadt, a leading German department store chain, out of bankruptcy.  Karstadt's parent company, Arcandor AG, filed for bankruptcy in June of 2009.  Financial details of the joint venture or the bid were not disclosed.

"Karstadt is an iconic German company with over 125 years of history and we are committed to reviving the brand and returning it to its former glory," said Nicolas Berggruen.  "We are optimistic about our opportunity to work cooperatively with Karstadt to re-build and enhance the company and to seize on strong prospects within the German retail industry.  We believe Karstadt suffered significantly under its previous owners and our joint venture with BCBG Max Azria Group is the ideal partnership to bring a fresh and knowledgeable perspective to the company while protecting jobs for Karstadt's employees."

"BCBG and Berggruen are committed to helping to restore the luster of the revered Karstadt brand," said Max Azria, founder, designer and CEO of BCBG Max Azria Group.

David Jehan, President of BCBG Max Azria Group stated, "Berggruen's financial expertise and resources, long term investment horizon and commitment to investing in Germany coupled with BCBG's robust procurement network and merchandising expertise will help drive significant value and opportunities for Karstadt, its employees, and customers."

Karstadt has 120 stores and employs over 25,000 people in Germany.  Berggruen Holdings and BCBG Max Azria Group are actively engaged in ensuring that their bid has the support of employees, union representatives and any other stakeholders of the company.

Nicolas Berggruen's investments have regularly demonstrated a great sense of social responsibility and commitment to society, abstaining from short-term profit maximization and instead focusing on sustainable long-term growth and profitability.  Berggruen Holdings has had long-standing offices in Berlin, primarily focused on real estate investments.  The firm's investment activities in Berlin have a strong focus on the preservation of Berlin's architectural icons such as Sarotti Hofe, Schuckert Werke and Cafe Moskau and it is committed to developing Berlin's reputation as an international center of art.

BCBG is an expert in global procurement and operations management for the retail industry.  The company manages over 500 production facilities and 1200 retail outlets worldwide, including six retail outlets in Germany.

About Berggruen Holdings

Berggruen Holdings is active worldwide in real estate, renewable energy and creative private investments.  The firm takes a long-term, value-oriented, often contrarian view.  It prefers to build organically and through acquisitions, partnering with management, as opposed to quick, opportunistic exits.  Over the last 20 years, Berggruen Holdings and related entities have made well over 100 direct investments using its proprietary capital, which allows for longer investment horizons.

About BCBG Max Azria Group

BCBG Max Azria Group designs, develops, produces and markets complete collections of women's ready-to-wear and accessories, each known for being at the forefront of creativity, quality and style.  The Group is one of the worldwide leaders in ready-to-wear, encompassing a portfolio of over 20 brands, including BCBGMAXAZRIA, Max Azria, Herve Leger by Max Azria and BCBGeneration, among others, and a retail and wholesale network that includes more than 13,500 points of sale throughout the world.  For more information, please visit www.bcbgmaxazriagroup.com.

SOURCE Berggruen Holdings; BCBG Max Azria Group