Praktiker’s shareholders agree to rescue operation

Following fierce discussion the shareholders of Praktiker, a German DIY retail group that has got into financial difficulties, finally agreed to the board’s rescue plan and a capital increase. Anchorage, an American private equity firm, is to gain a 15 per cent stake in the company through an option bond in exchange for a rescue credit bearing interest at a rate of 17 per cent. Part of the rescue plan is for the Max Bahr brand to be developed into the main sales format and for at least 120 Praktiker outlets to be rebadged.The turbulent general shareholders’ meeting withheld formal approval of both the supervisory and executive boards, with the exception of former international director Michael Arnold. Interim chairman Kay Hafner, who is also a member of the supervisory board, is under pressure from the principal shareholders, led by the Austrian Isabella de Krassny, to step down from the supervisory board. His mandate as chairman runs until 13 August. De Krassny’s preferred candidate for the position is the former boss of Obi Germany.