Kaiser's Tengelmann

Last-Ditch Rescue For German Food Retailer

  • Why it matters

    Why it matters

    The deal will safeguard thousands of jobs but critics say it isn’t good for competition in the German food retail market.

  • Facts

    Facts

    • Mediation talks led by former Chancellor Gerhard Schröder to prevent a break-up of supermarket chain Kaiser’s Tengelmann have led to a breakthrough that will save thousands of jobs, said Economy Minister Sigmar Gabriel.
    • Details of the deal have yet to be thrashed out but media reported that rival retailer Rewe will purchase Kaiser’s stores in Berlin while Edeka will get the stores in Bavaria.
    • Edeka has been trying to take over loss-making Kaiser’s Tengelmann from the Tengelmann group since 2014.
  • Audio

    Audio

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kaisers-store-dpa
Kaiser's stores will stay open after all, even if under the name of their competitors. Source: DPA

Mediation talks launched last week to avert the looming break-up of loss-making German supermarket chain Kaiser’s Tengelmann produced a deal that will safeguard the company’s 15,000 jobs, Economy Minister Sigmar Gabriel said on Monday.

“The mediation was completed successfully today,” Mr. Gabriel said. “I don’t expect there to be any more obstacles to implementing the mediation agreement.”

The talks were mediated by former German chancellor Gerhard Schröder. Unless there are any last minute hiccups, the outcome draws a line under two years of uncertainty for the food retailer, which until last week had appeared destined to be dismantled and sold off store by store in what would have led to heavy job losses.

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