KaDeWe stores: glamour, champagne, caviar and insolvency
The top floor of the Kaufhaus des Westens, Germany’s most renowned department store and a symbol of Berlin’s rich history, offers a feast for the senses and a potential drain on one’s wallet. Previously a delicatessen supermarket, the space now houses charming bars and restaurants serving champagne, caviar, oysters, delectable blinis with salmon, and refined pastries. Launching on March 27, 1907, the Kaufhaus des Westens, fondly known as KaDeWe, has surpassed all expectations since its inception, enchanting Germans with exclusive products previously unimagined.
Situated on Tauentzien, the grand KaDeWe building quickly became a mecca for Parisian fashion and a showcase for exotic fruits from far-flung locales such as the South Seas. However, the warehouses fell victim to Nazi expropriation during the 1930s due to the abundance of non-Aryan merchandise. Despite setbacks, the street remained a beloved boulevard and suffered extensive damage during World War II, including a fire caused by an American plane crashing into the roof of KaDeWe. Reconstruction spanned over a decade and a half, with all seven floors finally completed in 1956.
Yet, the iconic Kaufhaus des Westens in Berlin, known for its exquisite delicatessen offerings, has recently filed for insolvency with the Berlin district court of Charlottenburg. The primary reason behind this decision can be attributed to astronomically high rent prices for their occupied properties. Remarkably, this renowned establishment opened its doors in 1907 and even became a target of the Nazis during the 1930s.
The construction of the Berlin Wall in the 1960s resulted in a significant decrease in both staff and regular visitors at KaDeWe. Nevertheless, it gradually regained its former glory. A renovation project completed in 1978 expanded the sales area to a whopping 44,000 square meters, solidifying KaDeWe as one of Berlin’s prominent landmarks. Following the fall of the Wall in November 1989, countless East Germans flocked to KaDeWe, with up to 200,000 visitors in a single day, marking the highest number of patrons in its storied history.
Presently, KaDeWe stands as a vast emporium of exclusive brands, encompassing over 60,000 square meters of retail space and attracting approximately 50,000 customers daily. The owners of this enterprise are Signa, an Austrian real estate group holding a 49.1% stake, and Central Group, supported by the Chinese-Thai billionaire clan Chirathivat, holding the majority 50.1% stake. Together, they have also acquired other notable department stores, such as Switzerland’s Globus and Britain’s Selfridges.
In an unexpected turn of events, the glamour of KaDeWe has taken a backseat to insolvency, as the KaDeWe group recently filed for insolvency under the supervision of the Berlin district court of Charlottenburg due to exorbitantly high rents for their department store properties. The company will now undergo a reorganization process overseen by an administrator, giving hope for KaDeWe’s survival.
What remains unquestionable, however, is that the state will suffer significant financial losses as a result of this insolvency. In 2020, the company received a subsidiary guarantee of up to €90 million during the COVID-19 pandemic, backed by the states of Berlin and Hamburg as well as the federal government. This loan, granted to support the business, is set to expire this year.