The KaDeWe Group has filed for insolvency. Suppliers of perfume and make-up, as well as restaurant operators, apparently felt the financial difficulties beforehand.
The cosmetics association VKE is making allegations against the financially troubled KaDeWe Group. The luxury department store company, which filed for insolvency this week, has recently not paid numerous invoices or only paid them after threatening legal action, association managing director Andreas Fuhlisch told the German Press Agency. KaDeWe Group did not respond to requests for comment. The “Lebensmittel Zeitung” had previously reported.
The industry association represents the interests of 65 manufacturers in the skin care, make-up and perfume sectors, including L’Oréal, Coty, Dior and Chanel. According to their own information, the company’s turnover in Germany is 2.3 billion euros.
Significant payment delays
According to Fuhlisch, several companies informed the VKE in December about significant payment delays. The association then wrote to KaDeWe twice in January. Claims “in some cases of significant magnitude” were not paid or were only paid with considerable delays, the letter said. This remained unanswered despite the deadline. “It irritated us that we didn’t get any feedback,” said Fuhlisch.
The head of a beauty products manufacturer, who did not want to be named, confirmed the difficulties. Invoices of more than 300,000 euros are still outstanding. No payments have been made since the summer of 2023. When asked, he was put off several times by the KaDeWe Group. “The money will come next week, they said. There was a cheeky lie,” said the manager. The delays were due to server failures and cyber attacks. Deliveries were initially partially stopped in December and then completely stopped in January.
“If the funds don’t come, we have a problem”
Michael Näckel, the managing director of “Papaya Royal”, had similar experiences. Since 2016, he has been running two restaurants with 30 employees on the gastro floor of KaDeWe on Tauentzienstrasse in Berlin. According to his information, billing is carried out using the concession model: the income is initially paid in full to KaDeWe, and a few weeks later the entrepreneur receives his share, less rent and other costs.
There have been significant problems since late summer, reported Näckel. The amounts were only paid after a long wait and repeated inquiries, and in some cases not until today. A six-figure sum is open. “We have to pay wages and have obligations. If the funds don’t come, we have a problem,” said Näckel. He still hopes that there is a future for KaDeWe.
Other restaurant operators are apparently also waiting for their share. “We are very concerned that the affected restaurateurs will now become insolvent themselves. And not just their branches in KaDeWe, but also those throughout the city,” said Thomas Lengfelder, managing director of the Dehoga regional association, to the “Berliner Morgenpost” .
At the beginning of this week, when the KaDeWe Group filed for insolvency, those affected received an indirect answer as to what the difficulties could be attributed to. According to a report by the business magazine “Capital”, other business partners such as goods suppliers, craft companies and other service providers are also affected. When asked, the KaDeWe Group did not comment on the allegations.
Source: Stern
