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In a surprise move, insolvent German book chain Weltbild has walked away from a deal with private equity company Paragon which was on the verge of taking over a majority share of the company.
At the same time administrator Arndt Geiwitz has presented a new investor in the shape of Droege Group who, he believes, will serve Weltbild’s interests better in the long-term.
Initially Droege will acquire 60% of Weltbild; the creditors, represented by Geiwitz, will for now keep the remaining 40%. Financial terms of the deal, which will be officially signed next week, were not disclosed. It is thought that the family-owned company will eventually take over Weltbild as a whole. According to Geiwitz, Droege was among those investors showing an interest in Weltbild early on in the M&A process and considers the chain a long-term investment.
Droege founder and chairman Walter P J Droege is confident that he can establish Weltbild as a highly efficient “multi-channel retailer with "maximum customer orientation“. A new management will be installed in due course.
Founded 25 years ago, Düsseldorf-based Droege Group operates both as a business consultancy and an investor. Weltbild is its first foray into the book industry. Details about the future strategy for Weltbild have not been made public yet, but in a statement Giwitz confirmed that a further 50 shops have been earmarked for closure.