The bank debt of German retailer KarstadtQuelle fell a point or so to 91-92 as reports emerged that the company received lower-than-expected bids for 75 stores it is looking to sell. The name traded actively in February when Landesbank Baden-Württemberg (LBBW) sold a block of the ¤1.75 billion bank loan at 93-94 (LMW, 2/4).
LBBW was the first bank to sell, but approximately ¤400 million followed with several members of the Bayerische Landesbank and ABN Amro-led syndicate ditching their exposure. Goldman Sachs and Merrill Lynch were reportedly buyers of the paper which in turn has been traded to hedge funds. Investor relations officials at KarstadtQuelle declined comment.
The company announced last year it plans to sell assets, including the 75 stores, and reduce its workforce by 5,500 workers over the next three years. BC Partners is said to have offered ¤200 million less than the ¤600 million wanted.