Kaufland buys Familia hypermarkets

German retail group Kaufland​ is to buy 35 hypermarkets trading under the Familia fascia from compatriot group Bremke & Hoerster​ in August, the two companies have announced.

The deal also includes Bremke & Hoerster's distribution centre in Werl and frozen food warehouse facility in Olpe, which will continue to supply goods to the 35 stores acquired by Kaufland.

Bremke & Hoerster has still not found a solution for its 56 Combi and Fritz supermarkets, although negotiations are underway with potential buyers and developments described by the company as positive.

Bremke & Hoerster has been struggling to make money at Familia since 2001, when it increased its stake in the company from 45 per cent to 100 per cent. The medium-sized company has struggled with the debt burden entailed by that acquisition ever since, and matters have not been helped by the slump in the German economy.

The sales of the Familia business, said chairman Andreas Bremke, would at least secure the jobs of the 3,150 people working in the stores - something which the company would not have been able to guarantee if it had retained control of the stores. As it is, around 270 jobs will be lost because of the closure of an administration centre in Arnsberg.

Bremke said that the company would also sell its sole cash and carry unit, also based at Arnsberg, where 95 jobs will be saved.