Hilco backs deal for 75 Karstadt stores

German department store retailer KarstadtQuelle has sold 75 department stores to investment firm Dawnay Day Group and property specialist Hilco UK. The buyers are understood to have paid between Eu400 million and Eu500 million (£275.4 million and£344.2 million).

The stores have an average size of 55,435 sq ft (5,150 sq m) and the move will enable the retailer to focus on its remaining portfolio of 89 larger stores.

KarstadtQuelle chief executive officer Thomas Middelhoff called the deal a milestone in the retailer's turnaround strategy. He said: 'Now we will concentrate our full attention on the remodelling of the large department stores into modern shopping centres.'