Representatives of the Leipzig Karstadt department store travelled to Luxembourg on Tuesday 5 June 2018, to deliver 50,000 signatures from people from Leipzig and from all over Germany to the head office of their rental company Petersstraße S.à r.l., based on Rue d’Eich in Luxembourg city.
According to a press release from Karstadt Leipzig, Petersstraße S.à r.l. has terminated the lease with the department store and presented a new rental contract including a rent increase of close to 70%.
"It is our intention to point out that a huge number of citizens find the termination of the contract to our store and the consequent loss of close to 400 jobs totally unacceptable", said store managing director Michael Zielke. "Our dear customers and loyal staff members are of course at stake. What matters also is Leipzig, a town to which we are committed as traders, a town where we want to stay. Many smaller retailers may suffer if Karstadt leaves the city centre".
Contrary to isolated assumptions and according to own assessments, the rental fee is high and above average in Leipzig. Karstadt Leipzig is a solid and successful Leipzig store, nevertheless it could simply not afford a 70% rental increase. Alternatives to keep Karstadt at the current site and to consequently secure the close to 400 jobs at Karstadt, its partners and tenants, exist. "But to explore these alternatives, channels of communication need to be kept open", said Zielke.
"Supported by our Executive management, we will fight until the end to reach a mutually satisfactory settlement. For the first time in decades, Karstadt makes profit, opens several subsidiaries and makes full use of the digitalisation. In this light, an awkward shutdown as a result of disputes on rent receivables, which I personally judge utopian, is an anachronism."
