Expensive bankruptcy for the tax authorities too
The state of Berlin guarantees KaDeWe loans worth millions
February 17, 2024, 10:18 a.m
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The insolvency of the KaDeWe Group could also be financially unpleasant for Berlin: According to a report, the state assumed the payment risk of a Corona aid loan in 2020. Up to 18 million euros are said to be at stake.
According to a media report, the insolvency of the KaDeWe Group could cost taxpayers in Berlin up to 18 million euros. As the Rundfunk Berlin-Brandenburg (RBB) reported, the state of Berlin is currently still guaranteeing the department store group’s loans of this amount. Accordingly, the payment risk comes from a federal-state guarantee for a loan worth 90 million euros, which the KaDeWe parent company took out in 2020 as part of the Corona relief measures.
According to RBB, the federal government assumes half of the risk for this loan guarantee, with Berlin sharing the other half with Hamburg and Bavaria. The KaDeWe Group’s three most well-known department stores are located in these federal states: In addition to the store of the same name in Berlin, these are the Alsterhaus in Hamburg and the Oberpollinger in Munich.
According to RBB, the KaDeWe Group stated that repayments “in a relevant amount” had already been made to the lender. According to RBB, the loan amount is currently 55 million euros. The Berlin Senate Department for Finance did not want to comment on the sums mentioned. However, a spokesman explained to the RBB that the existing securities first had to be utilized before a default guarantee could be used. Insolvency alone does not result in “a claim being made on a guarantee”.
The KaDeWe Group filed for bankruptcy at the end of January. Company boss Michael Peterseim blamed the high rents of the insolvent real estate group Signa for the company’s financial problems.