GKK and WSF sold INNO to Axcent of Scandinavia and SKEL

GALERIA Karstadt Kaufhof (GKK) is the second largest department store group in Europe with 92 locations and approximately 15,000 employees. In April 2020, the company filed for insolvency. Since then, it has received support from The Economic Stabilisation Fund (WSF) administered by the Federal Republic of Germany – Finance Agency (Bundesrepublik Deutschland – Finanzagentur GmbH) to address the economic and social impacts of the coronavirus pandemic on the German economy.

As part of the first financing measure granted to GKK by WSF in 2021, GKK pledged the shares of INNO to WSF. In connection with GKK’s filing for insolvency for the second time in October 2022, GKK partly defaulted on the repayment. WSF and GKK then agreed to a structured M&A process to dispose of 100% of the shares in INNO.

INNO is the only department store in Belgium, offering a broad range of premium and mainstream brands. With a history spanning nearly 127 years, INNO has been a staple in the retail landscape of major Belgian cities, maintaining a loyal and growing customer base. Since the spring of 2021, INNO has been a leader in the Belgian online retail market through inno.be, providing an omnichannel shopping experience that blends online and offline shopping comfort.

Ayad Al-Saffar, the ultimate beneficial owner of Axcent of Scandinavia, has had a long career in retail and branding. In 2022, he, together with his partners acquired the Swedish department store chain Åhléns, which is celebrating its 125th anniversary this year. With around 3,000 employees, Åhléns has 48 department stores in Sweden, offering an attractive mix of in-house brands combined with international and Scandinavian brands.

SKEL is an investment company listed on Nasdaq Iceland, specialising in strategic investments to support management teams and entrepreneurs in developing enterprises for further value creation. SKEL’s portfolio consists of both listed and unlisted holdings in strategic sectors, including commerce and retail, and its management and board bring over 30 years of international experience in the consumer and retail space.

The buying consortium of Axcent of Scandinavia and SKEL is excited to enter the Belgian retail market, seeing INNO as the perfect strategic fit due to its strong household name and potential to better serve local consumers. This acquisition aims to expand INNO’s presence across Belgium, enhancing service to its loyal customers through new store openings. INNO’s CEO Armin Devender and his management team look forward to developing new projects, including opportunities to create and distribute their own brands, further strengthening INNO’s market position.

Clairfield International’s Frankfurt and Brussels offices acted as exclusive financial advisor to GKK and the WSF.