The merged company made up of the two German department stores Kaufhof and Karstadt will be led by Karstadt chief Stephan Fanderl. Kaufhof boss Roland Neuwald will leave at the end of January after only 14 months heading his company. The ex-Metro Kaufhof CEO had launched cost-cutting measures as well as initiatives to increase sales. He will be replaced at the head of the joint structure by Fanderl, who comes originally from Signa, owner of Karstadt and 50.01% owner of the joint structure. The rest is owned by HBC which acquired Kaufhof in 2015.

The group operates 243 stores in Germany, Belgium and Netherlands, including Galeria Inno, Saks Off and Hudson's Bay. According to reports in the German press, only the financial director of Kaufhof will continue in the new structure.