Sun-backed Neckermann files for insolvency

Negotiations between the management, trade union Verdi and Sun European Partners failed after the GP refused to back the company's restructuring plan with more cash.

Neckermann was taken over by the European arm of US investor Sun Capital Partners in 2008 from Primondo, the mail-order subsidiary of insolvent Arcandor. The deal was valued at €920m, with the GP paying €468.3m in equity for its 52% stake. Struggling Primondo, which went bankrupt in 2009, had originally planned to float the business but cancelled the IPO in 2008.

Neckermann is one of the biggest online retailers in Germany and a household name. The business was established in 1950, following the end of a trading ban on founder Josef Neckermann, who had been accused of working too closely with the Nazi regime during World War II.

Neckermann is one of a number of Primondo-owned companies sold off to private equity investors. Others include hessnatur and the HSE24 shopping channel which was recently taken over by Providence.

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• Topics
• DACH
• Exits
• Providence Equity Partners
• Sun European Partners
• Germany