KarstadtQuelle quits venture

The German retailer KarstadtQuelle AG reported yesterday that it was to sell its 82% stake in a three year old joint venture with the Starbucks Coffee International to the US coffeehouse chain.

The troubled retailer did not give any further details of the transaction, which is part of its restructuring plan. The plan includes selling a number of its department stores and cutting thousands of jobs. Due to German consumer unwillingness to spend, the company has been losing money steadily.

The sale to Starbucks gives the US company complete control over the joint venture which was launched in the fall of 2001. Germany has 37 Starbucks coffeeshops in 15 German cities. The over 450 employees employed by Starbucks will be kept on.