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Tengelmann Group

The Tengelmann Group is a privately held, family-owned German conglomerate founded in 1867 by Wilhelm Schmitz-Scholl as a small grocery business in Mülheim an der Ruhr, specializing in retail trade with a focus on supermarkets, home improvement, and apparel.^[1]^[2]
Over generations, under the stewardship of the Scholl and later Haub families, it expanded into one of Europe's largest retail groups, operating thousands of stores through key subsidiaries including the Tengelmann and Kaiser's supermarket chains, the OBI do-it-yourself retail network present in over a dozen countries, and the KiK discount clothing stores.^[2]^[1]^[3]
The group has diversified beyond core retail into real estate via TREI Real Estate and venture capital investments, reflecting a strategy of long-term ownership and operational control rather than short-term speculation.^[1]^[4]
Currently led by CEO Christian W. E. Haub, Tengelmann emphasizes sustainable growth and family governance, though it has navigated challenges such as the divestiture of its Plus discount chain and past international expansions into markets like Russia.^[3]^[2]^[5]

History

Founding and Early Expansion in Germany (1867-1972)

The Tengelmann Group originated on January 1, 1867, when Wilhelm Schmitz-Scholl founded the wholesale firm Wilh. Schmitz-Scholl in Mülheim an der Ruhr, specializing in colonial goods including coffee, tea, and cocoa.^[1] The business began as a modest operation focused on importing and distributing these commodities, reflecting the era's demand for exotic products in industrializing Germany.^[6] Following Wilhelm's death in 1887, management transitioned to his sons Karl and Wilhelm Schmitz-Scholl, with Karl becoming sole director in 1906 after his brother's departure.^[1] In 1912, the company expanded into manufacturing by launching the WISSOL brand for cocoa and chocolate production in Mülheim, marking a shift toward value-added processing alongside wholesale activities.^[1] The Haub family's connection emerged through the marriage of Karl's daughter Elisabeth Schmitz-Scholl to Erich Haub around 1932, integrating extended family influence while preserving Schmitz-Scholl control.^[7] Upon Karl's death in 1933, Elisabeth and her brother Karl Schmitz-Scholl Jr. inherited the enterprise, sustaining family-owned operations without reliance on external capital.^[1] Amid Germany's post-World War II economic recovery, Tengelmann pivoted to modern retail formats, opening its first self-service supermarket in 1953 at Leopoldstrasse in Munich.^[1] This innovation, inspired by emerging efficiency models, enabled rapid restructuring from counter-service shops to discount-oriented stores, capitalizing on the Wirtschaftswunder's consumer boom.^[8] Under joint leadership of Elisabeth Haub and Karl Jr., the firm methodically grew its regional footprint through organic development and targeted acquisitions like Kaiser’s Kaffee-Geschäft AG in 1971, culminating in the 1972 launch of the Plus discount chain's initial outlets.^[1] Erivan Haub, Elisabeth's son, assumed sole management in 1969 after Karl Jr.'s death, steering continued domestic consolidation via bootstrapped strategies emphasizing cost control and self-financed expansion.^[2]

International Ventures and Peak Retail Growth (1972-2000)

In 1972, Tengelmann launched the Plus discount grocery chain, marking the beginning of aggressive domestic expansion through low-price, limited-assortment formats that capitalized on Germany's growing demand for value-oriented retail. Concurrently, the group acquired Kaiser's Kaffee-Geschäft AG, a historic competitor founded in 1880, integrating its operations to bolster Tengelmann's supermarket presence and renaming it Kaiser's Tengelmann by the early 1990s. These moves, funded by the family's private capital without the scrutiny of public markets, enabled rapid scaling; by the 1990s, Plus and Kaiser's networks contributed to Tengelmann's portfolio of thousands of stores across Germany, emphasizing efficiency and private-label products to achieve economies of scale.^[1]^[2] International ventures commenced with the 1972 acquisition of the Austrian supermarket chain Löwa, providing an initial foothold in Central Europe amid post-war economic integration. The most ambitious overseas push occurred in 1979, when Tengelmann invested in the U.S.-based Great Atlantic & Pacific Tea Company (A&P), securing an initial 42% stake for approximately $75 million and gradually increasing to majority control; this represented the first major U.S. entry by a German retailer, targeting A&P's established but challenged network of supermarkets through operational restructuring and cost controls. In 1985, Tengelmann acquired a majority stake in OBI, a do-it-yourself home improvement chain originally founded in 1970, which facilitated expansion across Europe including Austria, Italy, and later Eastern markets, positioning OBI as Germany's leading DIY retailer by the late 1990s with a focus on large-format stores for hardware and building supplies.^[9]^[10]^[11]^[2] The 1990s saw further diversification and geographic extension, with Plus stores entering Hungary and Poland to tap into emerging Eastern European markets following the fall of the Iron Curtain, while OBI consolidated its pan-European presence through organic growth and partnerships. Additional forays included the 1990 takeover of Modea (later rebranded Takko) in textiles and the 1994 founding of KiK apparel discounters, leveraging Tengelmann's unlisted structure for patient capital deployment in non-food sectors. This era culminated in peak retail scale, with group sales exceeding 50 billion Deutsche Marks by 1993, driven by the synergies of high-volume chains but underscoring the risks of overextension into diverse, competitive international arenas without diversified revenue buffers.^[1]^[2]^[9]

Restructuring, Divestitures, and Strategic Shifts (2000-2025)

In response to intensifying competition and market saturation in the discount grocery sector, Tengelmann initiated the divestiture of its Plus chain starting in 2007. The Portuguese operations were sold to Jerónimo Martins that year, followed by sales of stores in other markets, including the Czech Republic to Rewe Group, Hungary to Spar Austria, and Greece to Delhaize Group in 2008.^[12]^[13] By 2009, the core German Plus business merged with Edeka's Netto discounters, with Tengelmann retaining a minority stake in the resulting entity to streamline operations and reallocate capital away from underperforming assets.^[14] Tengelmann's exit from the U.S. market culminated with the full withdrawal from its investment in The Great Atlantic & Pacific Tea Company (A&P) following multiple bankruptcies. After acquiring a controlling stake in 1979, Tengelmann faced persistent challenges from competitive pressures, leading to A&P's Chapter 11 filing in 2010 and again in 2015, with the chain's remaining stores closing by late 2015.^[15]^[16] Tengelmann signaled its intent to divest as early as 2011, anticipating reduced or eliminated ownership post-restructuring, effectively ending U.S. operations by 2016 to focus resources on more viable European holdings.^[17]^[18] Post-2010, Tengelmann emphasized core competencies through targeted support for key subsidiaries and a pivot toward diversified investments. In 2023, the group intensified backing for its home improvement chain OBI amid operational transformations, including management reshuffles to enhance efficiency.^[19] This was complemented by a 2025 refinancing of syndicated loan facilities, arranged by a banking consortium, to bolster financial stability and enable sustained investment in strategic areas.^[20] Concurrently, the establishment of Tengelmann Growth Partners marked a shift to a holdings-oriented model, with the firm targeting equity investments in growth-stage small- to medium-sized enterprises across B2C and B2B sectors in DACH and Northern Europe.^[21] Parallel developments included expansion via TREI Real Estate, a wholly owned subsidiary focused on developing sustainable residential and retail properties in Germany, Poland, and the U.S., reflecting pragmatic reallocation toward higher-return asset classes.^[22]

Ownership and Governance

Haub Family Control and Succession Dynamics

Erivan Haub assumed sole managing partnership of Tengelmann in 1969 following the death of his uncle Karl Schmitz-Scholl Jr., leading the group's expansions through the 1970s and subsequent decades, including international diversification into retail and home improvement sectors.^[2] By the early 2000s, he delegated operational control to his sons Karl-Erivan W. Haub and Christian W. E. Haub, positioning them as co-managing partners while retaining strategic oversight until his death on March 6, 2018.^[23] This handover maintained the family's unified private ownership, eschewing public listings that could introduce external shareholder pressures and short-termism. Karl-Erivan Haub, who co-led European operations, disappeared on April 7, 2018, during solo ski mountaineering training near the Matterhorn in the Swiss Alps.^[24] An extensive search involving helicopters and ground teams yielded no trace, prompting his brother Christian to assume sole management of Tengelmann on April 17, 2018.^[25] The Cologne District Court declared Karl-Erivan legally dead on May 14, 2021, after three years without evidence of survival, facilitating estate distribution under German law.^[26] In June 2021, Christian Haub acquired Karl-Erivan's shares from family heirs, securing a majority stake of approximately 68.67% and consolidating control without external financing or public disclosure of transaction details beyond the internal family transfer.^[1] This move resolved prior frictions among Haub siblings over strategic direction—evident in earlier public feuds documented in German media—through private negotiation rather than litigation, preserving long-term autonomy characteristic of family-held enterprises.^[27] Unlike publicly traded firms, where succession disputes often escalate to courts or shareholder votes, the Haubs' structure enabled swift continuity, prioritizing operational stability over immediate value extraction. Reports in 2024 alleged Karl-Erivan faked his disappearance to relocate to Moscow with a Russian associate, Veronika Ermilova, citing phone records, surveillance imagery, and investigative journalism; these claims, originating from a criminal complaint filed by reporters in 2023, suggested family awareness but lacked forensic confirmation and were denied by Christian Haub's representatives as baseless speculation.^[28]^[29] Such theories, while fueling public intrigue amid Tengelmann's prior Russian market forays under Karl-Erivan, did not disrupt the internal succession, underscoring the opacity and resilience of private family governance in shielding core assets from external volatility.^[5]

Management Structure and Decision-Making

Tengelmann Twenty-One KG, the Munich-based holding company of the Tengelmann Group, oversees more than 50 subsidiaries operating in Europe and North America across diverse sectors including retail, real estate, and venture investments.^[1] The entity functions as a strategic coordinator, managing a portfolio that encompasses major operations such as the home improvement chain OBI, the apparel discounter KiK, the real estate developer TREI, and affiliated investment vehicles like Tengelmann Ventures, ECP Growth, and Tengelmann Growth Partners.^[1] Governance is structured hierarchically under an Executive Board chaired by Christian W. E. Haub, who serves as CEO and sole managing partner, with additional members including Dr. Andreas Guldin as Chief Global Strategist, Dr. Sandra Dembeck as Chief Financial Officer, Jela Götting as Chief People Officer, and others focused on tax, investments, and growth initiatives.^[1] This board, advised by an external Advisory Board led by Thomas Ingelfinger, centralizes high-level strategic oversight while permitting decentralized execution at the subsidiary level, where operational decisions align with empirical performance indicators such as revenue efficiency and market adaptability rather than external regulatory or compliance mandates.^[1] The family's controlling stake enables agile, long-horizon decision-making unencumbered by the quarterly earnings cycles and shareholder activism prevalent in public corporations, allowing for investments and restructurings—such as targeted divestitures—driven by direct assessments of causal factors like competitive positioning and operational returns.^[1] This private framework prioritizes sustained value generation through data-informed portfolio adjustments, contrasting with the bureaucratic constraints often imposed by public listing requirements.^[1]

Current Business Operations

Retail and Supermarket Chains

Kaiser's Tengelmann operates as Tengelmann Group's primary supermarket chain in Germany, functioning as full-service retailers with an efficiency-driven model centered on cost control through private-label products and streamlined operations. The chain maintains approximately 65 stores concentrated in the Rhein-Main-Neckar region of Hesse, focusing on regional supply networks to minimize overhead and support competitive discount pricing on staples.^[30] This approach contrasts with larger national discounters by prioritizing value-oriented full-range assortments, including expanded private-label offerings developed in response to price competition from Aldi and Lidl.^[31] The supermarkets emphasize fresh goods such as bakery items, produce, and meat, leveraging integrated logistics for daily replenishment to ensure quality and availability while keeping prices low. Sales historically reached €1.94 billion across a larger network of over 500 stores in 2013, though post-divestiture restructuring has scaled operations to sustain profitability amid shrinking physical footprints. Tengelmann has adapted to e-commerce pressures by investing in robust physical distribution systems rather than heavy online pivots, enabling efficient store fulfillment and maintaining a niche market share in traditional grocery segments through low operational costs.^[2] Supply chain resilience has been a key strength, with centralized procurement allowing quick adjustments to disruptions, though the chain's reduced scale limits broader international exposure following exits from chains like Plus and Netto. Critics note this focus on domestic efficiency has constrained growth potential in a digitalizing market dominated by online giants, yet verifiable metrics show sustained viability via overhead reductions and consumer loyalty to in-store fresh offerings.^[32]

Home Improvement Sector (OBI)

The OBI chain specializes in do-it-yourself (DIY) home improvement products, including tools, building materials, garden supplies, and household goods, forming a major non-food retail segment for the Tengelmann Group. Tengelmann acquired a majority stake in OBI in 1985, marking its entry into the hardware and building supplies sector, and increased its ownership in 2007 by purchasing shares from the founding Lux family.^[2]^[33] Under Tengelmann's ownership, OBI expanded significantly, becoming Germany's prominent DIY operator and Europe's largest by store count, operating 644 outlets across ten countries including Germany, Austria, Poland, and Italy as of recent reports.^[34] This scale provides advantages in a fragmented European DIY market, where generalists like OBI leverage broad assortments of 40,000 to 60,000 items per store to capture diverse customer needs amid competition from niche specialists.^[35]^[36] OBI's market position in Germany features approximately 15% share, contending with rivals such as Bauhaus and Hornbach in a sector characterized by consolidation among top players despite numerous smaller operators.^[36] While OBI historically led in domestic sales, Bauhaus surpassed it in 2023 with estimated revenue of €4.31 billion, reflecting intensified rivalry and sector headwinds like softening demand post-home renovation booms.^[37] OBI's European footprint, spanning over 600 stores, bolsters resilience through diversified revenue, serving around 250 million customers annually and maintaining sourcing hubs in Asia for supply stability.^[34]^[38] In response to post-pandemic challenges, including supply chain bottlenecks and elevated costs, Tengelmann intensified support for OBI's turnaround in 2023 via a management reshuffle at the holding level, prioritizing digital transformation, e-commerce acceleration, and operational efficiencies.^[19] Initiatives include adopting platforms like VTEX for online growth and TradeBeyond for end-to-end supply chain optimization, aiming to mitigate disruptions from global sourcing dependencies and enhance competitiveness against agile specialists.^[39]^[40] These efforts underscore OBI's strategic pivot toward integrated retail models, blending physical stores with digital services to sustain market dominance in a recovering yet pressured DIY landscape.^[19]

Real Estate Development and Investments

TREI Real Estate GmbH, a wholly-owned subsidiary of the Tengelmann Group, focuses on developing and managing residential and retail properties primarily in Germany, Poland, and the United States, leveraging the group's equity to pursue low-leverage growth.^[22] In 2023, TREI's portfolio encompassed 153 retail properties across Germany (51 sites) and Poland (102 sites), generating €80.2 million in rental income, with many anchored by discounters such as Aldi, Lidl, and Biedronka.^[4] These commercial holdings underpin the group's retail operations by providing stable, income-generating assets tied to physical store locations, thereby diversifying revenue streams beyond volatile consumer spending patterns.^[4] TREI's development pipeline reached €2.0 billion in 2023, with €213.3 million invested in new projects, including the expansion of Vendo Parks—compact retail parks in Poland designed for discount and convenience formats.^[4] The company completed six Vendo Parks that year, bringing the total to 38 fully leased sites, while maintaining a pipeline of 14 additional parks; these facilities emphasize sustainable, tenant-focused designs in secondary urban locations to support local retail anchors.^[4] Residential developments complemented this, with approximately 6,100 units under construction, but retail and commercial segments remain central to integrating with Tengelmann's broader operations.^[4] The subsidiary's asset-backed approach bolsters group stability, with a loan-to-value ratio of 34.1% and net debt of €504.4 million against a €1.3 billion portfolio, enabled by Tengelmann's family equity infusion that minimizes reliance on external financing amid market fluctuations.^[4] Direct real estate holdings like these empirically hedge inflation better than equities, as rents and property values adjust to rising prices, contrasting with peer firms' heavier exposure to stock market volatility that amplifies downturns without tangible asset buffers.^[41] This strategy underscores causal advantages of physical assets in preserving capital during economic uncertainty, prioritizing long-term resilience over short-term speculative gains.^[4]

Venture Capital and Growth Initiatives

Tengelmann Ventures, established in 2009 as the venture capital arm of the Tengelmann Group, targets early-stage investments in consumer-centric B2C and B2B companies, primarily in the DACH region with extensions to Europe and North America.^[42] The firm emphasizes disruptive innovations in sectors like e-commerce, marketplaces, and sustainability-driven models, drawing on the group's 150-year retail heritage to provide operational support, network access, and expertise in scaling consumer-facing businesses.^[43] Notable portfolio inclusions encompass Rebike, a bike-sharing service promoting urban mobility; Wholey Organics, focused on organic food distribution; and Masterplan, offering digital financial planning tools.^[42] Complementing this, Tengelmann Growth Partners pursues growth equity in small- to medium-sized enterprises, specializing in financings for expansion, succession planning, and buy-and-build strategies within fragmented markets.^[21] This approach targets B2C and B2B opportunities where Tengelmann's entrepreneurial track record—rooted in its founding in 1867—enables active involvement in consolidating operations and driving efficiency, often in consumer goods and services.^[21] The strategy mitigates risks inherent in venture investing, such as high failure rates in early-stage startups, by prioritizing predictable growth trajectories over speculative bets, contrasting with the group's core retail predictability.^[21] Affiliated with these efforts, Emil Capital Partners (rebranded ECP Growth), launched in 2011 in partnership with Tengelmann following the divestiture of U.S. assets, extends investments into North American consumer sectors, closing its fourth fund at $100 million in May 2025 with Tengelmann as anchor investor.^[44] Collectively, these initiatives span over 50 holdings across Europe and North America, fostering entrepreneurial succession without predefined ideological constraints, though venture outcomes remain subject to market volatilities evidenced by broader industry data on startup attrition rates exceeding 90% in early years.^[1]^[45]

Former Businesses and Exits

Divested Retail Operations

In 2007, Tengelmann entered a joint venture with Edeka Group to acquire the struggling Plus discount supermarket chain, with Edeka holding 70% and Tengelmann 30%; however, by December 2008, Edeka assumed full control of the Plus operations, rebranding approximately 2,300 stores as Netto Marken-Discount amid intense competition in Germany's food retail sector.^[46]^[47] This divestiture pruned unprofitable discount formats, allowing Tengelmann to redirect resources from low-margin grocery operations facing pressure from larger rivals like Aldi and Lidl. International Plus units were also shed: Czech stores sold to Rewe Group in 2008, Hungarian outlets to Spar Austria, and remaining Eastern European operations divested by 2009, reducing exposure to fragmented markets with thin profitability.^[48] Tengelmann's longstanding stake in the U.S.-based A&P supermarket chain, acquired in 1979 and comprising about 38% ownership by 2010, ended amid repeated financial distress. A&P filed for Chapter 11 bankruptcy in December 2010 due to $1.2 billion in debt and declining sales against competitors like Walmart and regional chains; Tengelmann anticipated an exit through restructuring or merger, but operations persisted unprofitably.^[17]^[15] A second filing in July 2015 triggered liquidation, closing over 100 stores and eliminating around 28,500 jobs as assets were sold piecemeal to buyers including Acme Markets; Tengelmann fully divested by September 2015, recognizing sunk costs in a mature U.S. market dominated by scale advantages elsewhere.^[16]^[49] Tengelmann retained a 15% silent participation in Netto Marken-Discount following the Plus handover, but sold this stake to Edeka in July 2020 for an undisclosed sum, fully exiting the food discounter segment.^[50] This move avoided ongoing capital drains in a hyper-competitive discount environment, where Netto's growth masked broader sector margin erosion from private-label wars and supply chain inefficiencies. In non-food retail, Tengelmann divested its interest in variety discounter TEDi in April 2021 as part of a restructuring with joint owner H.H. Group, exchanging TEDi shares for full control of apparel discounter KiK to streamline overlapping discount holdings.^[51] TEDi, launched in 2004 with over 2,500 stores across Europe by divestiture, had expanded aggressively but faced redundancy with KiK's similar low-price model; the swap preserved jobs in consolidated operations while shedding inefficient duplication, enabling sharper focus on viable retail cores like home improvement. These exits collectively mitigated losses from underperforming formats, fostering long-term resilience by prioritizing higher-return investments over perpetuating marginal ventures.

Discontinued Distribution and E-Commerce Ventures

Tengelmann E-Commerce GmbH, founded in 2010 as a wholly owned subsidiary headquartered in Mülheim an der Ruhr, centralized the group's early digital retail efforts. This entity oversaw platforms such as Plus.de—launched in 2001 to sell groceries and consumer goods online—and GartenXXL.de, focusing on garden supplies and home improvement items. These initiatives aimed to extend the company's physical retail infrastructure into e-commerce, capitalizing on established procurement for cost advantages.^[52]^[53]^[54] The platforms encountered structural headwinds from agile online specialists offering faster delivery and broader selection, rendering integrated models less viable amid thin margins and subdued adoption rates for hybrid retail-digital formats. In 2014, during talks to sell Kaiser's Tengelmann supermarkets to Edeka, the group offered to transfer Tengelmann E-Stores GmbH (incorporating Plus.de and GartenXXL.de), but antitrust blocks on the parent deal prompted a broader retreat from owned operations. By the late 2010s, direct e-commerce activities wound down, with Plus.de ceasing in 2019 after generating limited scale relative to sector leaders. This discontinuation underscored overreliance on unproven synergies between traditional retail logistics and nascent online demand, prompting a shift to external venture funding for tech adaptation while preserving strengths in physical distribution and specialist chains. Wholesale distribution units, previously supporting third-party retailers, were similarly de-emphasized post-2000s as vertical integration proved inefficient against dedicated logistics providers, though specific closure metrics remain undocumented in public records.^[55]

Regulatory and Legal Challenges

Antitrust Merger Disputes

The proposed acquisition by Edeka of 451 stores from Tengelmann Group's Kaiser's Tengelmann chain, announced in late 2014, triggered intense antitrust scrutiny under German law. On April 1, 2015, the Bundeskartellamt prohibited the transaction, concluding it would significantly impede effective competition by enhancing Edeka's market power in numerous local and regional markets, particularly rural areas, leading to reduced consumer choice and potential price increases despite the target's struggling performance.^[56]^[57] The regulator dismissed proffered efficiencies, such as procurement savings, as insufficient to offset structural harms from consolidation in a sector already facing discounter pressure from Aldi and Lidl.^[57] Edeka and Tengelmann appealed the decision, leading to a rare ministerial intervention. On March 17, 2016, Federal Minister for Economic Affairs Sigmar Gabriel granted authorization under Section 36 of the Act against Restraints of Competition (GWB), overriding the Bundeskartellamt's prohibition on grounds of overriding public interest, including the preservation of approximately 16,000 jobs at the loss-making Kaiser's chain and commitments by Edeka to divest over 100 stores to competitors like Rewe to mitigate competitive concerns.^[58]^[59] Gabriel's rationale emphasized that blocking the deal risked immediate store closures and supply chain disruptions, potentially harming consumers more than the merger itself, while requiring structural remedies to address overlap.^[58] This episode underscores causal tensions in merger review: regulatory focus on pre-merger concentration metrics presumes harm from scale, yet first-principles analysis reveals mergers can yield verifiable efficiencies like streamlined logistics and bargaining leverage with suppliers, enabling lower costs in thin-margin grocery retail. Empirical studies of U.S. grocery mergers yield mixed results—some document localized price rises of 1-2% post-transaction due to softened rivalry, but others identify net consumer gains from operational synergies when divestitures preserve rivalry and failing-firm dynamics apply.^[60]^[61] The Bundeskartellamt's structural presumption, while rooted in protecting fragmented markets, delayed resolution for over a year, arguably eroding the agility needed to counter discounters' efficiencies and risking the target's viability absent integration.^[57] Tengelmann's involvement reflects a pattern of heightened EU and German oversight in food retail, where authorities prioritize averting dominance amid 70-80% market shares held by top players, as seen in prior probes like the 2007 Plus chain divestitures.^[62] The group's privately held status, free from public market pressures, supported prolonged navigation of appeals and remedies, contrasting with listed firms' incentives for quicker exits. Subsequent 2017 court confirmation of the original prohibition highlighted institutional friction but did not unwind the ministerial approval, allowing the deal to proceed with adjustments.^[63]

Leadership and Family Controversies

Karl-Erivan Haub, co-managing director of Tengelmann Group, vanished on April 7, 2018, during a solo backcountry ski expedition near Zermatt in the Swiss Alps, where he was last observed boarding a cable car lift.^[28] ^[64] A multi-day aerial and ground search involving helicopters and rescue teams yielded no trace, leading the family to abandon hope of survival by mid-April 2018.^[65] Christian Haub, his younger brother and fellow co-managing director, assumed sole leadership of the company immediately, stating the loss constituted a family tragedy but posed no threat to the enterprise's continuity.^[66] In May 2021, the Cologne Local Court declared Karl-Erivan Haub legally dead after three years of absence, based in part on an affidavit from Christian Haub affirming no evidence of his brother's survival.^[28] ^[1] In June 2021, Christian Haub purchased Karl-Erivan's stake in Tengelmann from his widow, Katrin Haub, for more than €1 billion, consolidating family control at approximately two-thirds ownership and averting potential disputes over inheritance.^[67] ^[1] April 2024 reports from German investigators alleged Karl-Erivan Haub staged his disappearance to relocate to Moscow with associate Veronika Ermilova, citing 13 phone contacts in the days prior, surveillance videos showing a facial match exceeding 99% probability, and business ties to Russia developed during Tengelmann's expansions there from 2010 to 2015.^[28] ^[29] Christian Haub's legal representative denied any complicity or prior awareness, emphasizing insufficient proof to challenge the death ruling, though the Cologne prosecutor's office initiated a probe into possible false oath by Christian Haub.^[68] ^[28] These developments eroded familial trust amid ensuing media scrutiny but elicited no verifiable disruption to Tengelmann's operations, as the private buyout preserved unified decision-making without external investor involvement or equity dilution.^[1] In family-held conglomerates like Tengelmann, such personal upheavals can be contained through internal mechanisms, contrasting with diffused accountability in public entities where equivalent scandals often amplify governance risks and financial instability.^[25]

Economic Impact and Performance

Long-Term Financial Resilience

The Tengelmann Group's financial structure, characterized by its status as a privately held entity under family control since its founding in 1867, has enabled a focus on long-term reinvestment rather than short-term dividend payouts typical of publicly traded peers.^[1]^[9] This ownership model, with the Haub family retaining majority stakes exceeding 75%, has sustained operations through economic cycles without the volatility induced by quarterly earnings pressures or activist investors.^[69] Estimated family-associated assets and holdings, derived from revenue-generating participations exceeding €8 billion annually as of recent reports, underscore a balance sheet resilient to market fluctuations, contrasting with public retailers' exposure to stock market corrections.^[70] In 2025, the group secured refinancing of its holding-level debt through new syndicated loan facilities, arranged via a banking consortium and closed in June, demonstrating continued access to liquidity at favorable terms indicative of prudent leverage management.^[71]^[20] This move, following prior facilities agreements, maintained operational flexibility without excessive borrowing, as evidenced by the absence of distress signals in a high-interest environment where many leveraged peers faced refinancing challenges.^[72] Demonstrating endurance, Tengelmann navigated the post-2008 financial crisis by executing strategic divestitures, such as the sale of its Plus discount chain in 2008, which allowed reallocation of capital to higher-margin segments amid broader retail sector contractions.^[4] Subsequent recoveries, including further exits like Kaiser's Tengelmann operations by 2017, refuted predictions of terminal decline for traditional brick-and-mortar models by preserving core value through disciplined portfolio pruning rather than reactive cost-cutting seen in public counterparts.^[4] This approach, unencumbered by disclosure mandates, prioritized causal sustainability over speculative growth narratives.

Contributions to Employment and Markets

The Tengelmann Group has historically provided employment to hundreds of thousands across its retail operations, peaking at approximately 200,000 employees in 1997 through its extensive network of supermarkets and discounters in Germany and Europe.^[8] Following divestitures of grocery chains like Plus in 2007 and Kaiser's Tengelmann in 2014, which integrated into larger competitors such as Edeka and involved short-term job risks for around 8,000 positions in the latter case, the group shifted resources to enduring sectors including discount textiles via KiK (employing about 25,000) and DIY retail through Obi (with roughly 40,000 employees group-wide).^[73]^[74]^[34] These reallocations, while critiqued for transitional disruptions, preserved net employment in viable, efficiency-driven models, avoiding the prolonged losses associated with uncompetitive grocery formats amid intensifying discounter rivalry from Aldi and Lidl.^[75] In markets, Tengelmann's discount-oriented approach, particularly via the Plus chain operational until 2007, bolstered price competition in Germany's grocery sector, where discounters collectively captured over 40% market share by the early 2000s, exerting downward pressure on consumer prices through streamlined assortments and limited supplier negotiations.^[76] Empirical analyses of similar soft-discounter integrations indicate that such models sustained lower retail margins and passed savings to shoppers, with price levels in competitive regions remaining 5-10% below less contested areas post-merger adjustments.^[77] This efficiency contrasted with higher-cost traditional formats, enhancing overall market dynamism without reliance on subsidies. As a family-controlled entity since 1867, Tengelmann exemplifies sustained private investment in retail innovation, funding expansions into non-food discount and home improvement without public bailouts, unlike some state-influenced European peers facing fiscal interventions during downturns.^[1] This structure supported long-term adaptability, channeling capital from exited grocery ventures into high-volume, low-margin operations that prioritized operational resilience over short-term employment guarantees.^[4]

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Tengelmann delivers solid results | Article - Fruitnet
Sep 2, 2010 · Tengelmann continues to hold a 15 per cent stake in discounter Netto after selling its Plus subsidiary to the company in 2009, while it is ...Missing: 2007-2008 | Show results with:2007-2008
[15]
A&P, U.S. Grocery-Store Chain, Files for Bankruptcy - Bloomberg
Dec 13, 2010 · It listed assets of $2.5 billion and debt of $3.2 billion yesterday in a Chapter 11 filing in U.S. Bankruptcy Court in White Plains, New York.Missing: withdrawal | Show results with:withdrawal
[16]
A&P grocery chain files bankruptcy again - USA Today
Jul 20, 2015 · The grocery chain sought federal bankruptcy court protection anew in the Southern District of New York, citing about $2.3 billion in debts and ...Missing: withdrawal | Show results with:withdrawal
[17]
Tengelmann expects to exit A&P in bankruptcy process - Reuters
Jul 14, 2011 · "We hope that A&P can be led out of its insolvency. But we do not believe that we will be significant shareholders after the process ends," ...Missing: withdrawal 2016
[18]
Tengelmann Group to withdraw from US | News - Retail Week
Jul 7, 2011 · Germany-based Tengelmann Group is apparently looking to withdraw from the US after 32 years of operation by selling its stake in bankrupt ...
[19]
Tengelmann focuses on the transformation of Obi - DIY International
Mar 28, 2023 · Tengelmann Holding, the parent company of Germany's largest DIY store operator Obi, is reshuffling its management board and plans to increase its support for ...
[20]
Freshfields advises banks on Tengelmann refinancing
Jul 25, 2025 · Global law firm Freshfields has advised a banking consortium on the refinancing of the existing syndicated loan facilities of Tengelmann ...Missing: 2023 transformation
[21]
Tengelmann Growth Partners: Home
Tengelmann Growth Partners is a family equity investor, actively investing into growth-orientated small- to medium-sized companies in the B2C and B2B ...YouUsImprintYou & UsGet in Touch
[22]
Company - Trei Real Estate
Trei develops and manages customized and sustainable residential and retail properties in Germany, Poland and the United States.
[23]
Remembering Erivan Haub (1932-2018)
He became Tengelmann's managing director in 1969, after apprenticing as a wholesale trader in Germany and America—in Chicago and in La Habra, California—and ...Missing: expansions | Show results with:expansions
[24]
Family sees no hope for missing German billionaire - SWI swissinfo.ch
Apr 13, 2018 · Haub, 58, whose family is among Germany's wealthiest, has run the Tengelmann group since 2000. The company owns the OBI home improvement chain ...Missing: control succession<|separator|>
[25]
Sudden death succession planning urged in wake of Haub loss
Apr 20, 2018 · The loss of billionaire heir Karl-Erivan Haub brings home the need for families to prepare robust succession plans to ensure their businesses survive, experts ...Missing: control | Show results with:control
[26]
German billionaire declared dead three years after going missing
May 14, 2021 · A German court on Friday officially declared billionaire Karl-Erivan Haub dead, more than three years after the head of retail group Tengelmann went missing in ...Missing: presumed | Show results with:presumed
[27]
The surprising role of family feuds in German business
Jan 30, 2021 · The feud among the billionaire scions of the Tengelmann retail empire led to speculation that Karl-Erivan Haub, the group's fifth-generation CEO ...
[28]
Billionaire Faked Own Death To Join Russian Lover in Moscow
Apr 18, 2024 · German billionaire Karl-Erivan Haub was officially declared dead in 2021, three years after vanishing in the Swiss Alps.Missing: Matterhorn | Show results with:Matterhorn
[29]
Billionaire Staged Death on Matterhorn to Join Russian Girlfriend
Apr 18, 2024 · Karl-Erivan Haub, a supermarket billionaire, vanished from a ski trip in 2018. Investigators allege he faked his death and fled to Russia.Missing: presumed | Show results with:presumed
[30]
Kaiser's Tengelmann (65 Branches) 2025 Company Profile
Operator of 65 retail food stores. The business units are located in Rhein-Main-Neckar region in Hessen, Germany. Contact Information. Ownership Status.Missing: sales 2024
[31]
WORLD LEADERS - Supermarket News
About 90% of sales are in food retailing. Sharp price competition has forced Tengelmann to step up its private-label program in Germany with the introduction ...Missing: efficiency goods
[32]
Tengelmann Group - Wikipedia
Tengelmann Group ; Retail, Real Estate, Venture Capital · Munich, Germany · Christian W. E. Haub, CEO · 8,385 Mrd. Euro (2021) · 65.050 (2021, worldwide).History · Consolidation (2000 · Business areas · Former businesses
[33]
Tengelmann CFO: Kaiser's Business A 'Burden' | ESM Magazine
Jul 13, 2015 · Kaiser's Tengelmann GmbH generated a net turnover of €1.86 billion (-4.0%) in the 2014 financial year. Tengelmann had hoped to sell the business ...Missing: revenue | Show results with:revenue
[34]
OBI (retail chain) Facts for Kids
Oct 17, 2025 · In 1985, a company called the Tengelmann Group bought most of OBI. They bought even more shares in 2007 from the Lux family, who helped start ...Missing: acquisition history
[35]
OBI corporate website
250,000,000 customers annually, 644 stores in Europe: Even the most experienced beaver couldn't build such a perfectly organised lodge, on such a huge scale, ...
[36]
together on the way to becoming europe's number one
OBI now operates more than 640 stationary stores throughout Europe, carrying a range of 40,000 to 60,000 items on average. Over more than five decades of its ...Missing: 2023 | Show results with:2023
[37]
Germany DIY Retailing Market Report 2024-2029 - Mintel Store
DIY Retail Germany Market Share: The market is fairly concentrated, with leading players Bauhaus and OBI each representing about 15% of the market. Germany DIY ...
[38]
Bauhaus is the new DIY market leader in Germany
Mar 4, 2024 · According to estimates by Dähne Verlag, the DIY chain's sales in Germany amounted to around EUR 4.310 bn in 2023. The Obi franchise group ...<|separator|>
[39]
OBI Strengthens Position as Europe's Leading DIY Retailer with ...
Rating 4.8 (1,250) Sep 15, 2025 · Headquartered in Wermelskirchen, OBI operates more than 640 stores across ten European countries, including Austria, Poland, the Czech ...Missing: 2023 | Show results with:2023
[40]
VTEX supports OBI unlocking new market potential and accelerating ...
May 29, 2024 · OBI currently has more than 640 stores across Europe. Alongside its home market in Germany, OBI is also represented in a further nine European ...
[41]
TradeBeyond Enables OBI to Commit to Supply Chain Efficiency ...
May 22, 2024 · TradeBeyond's industry-leading CBX Suite will help OBI to optimize its supply chain end-to-end, from supplier management to its sourcing, quality, order ...Missing: issues | Show results with:issues
[42]
Real estate as an inflation hedge: new evidence from an ...
Real estate is an effective long-term inflation hedge. Direct real estate hedges inflation in crises, while real estate securities only hedge in stable periods.Missing: Tengelmann | Show results with:Tengelmann
[43]
Tengelmann Ventures: Home
Tengelmann Ventures is an early-stage Venture Capital firm focused on empowering the next generation of consumer centric B2C/ B2B entrepreneurs.<|separator|>
[44]
Tengelmann Ventures Portfolio Investments ... - CB Insights
Tengelmann Ventures is the corporate venture arm of Tengelmann Group, focused on investments in eCommerce and social commerce concepts, marketplaces, as well as ...
[45]
Emil Capital Partners Rebrands as ECP Growth and Announces ...
May 21, 2025 · ECP Growth was founded in close partnership with the Tengelmann Group, a 150-year-old family-owned holding company based on Munich, Germany and ...
[46]
TEV | Tengelmann Ventures – Investors Database - Unicorn Nest
Summary. TEV | Tengelmann Ventures is the famous VC, which was founded in 2009. The company was established in Europe in Germany.<|separator|>
[47]
EDEKA and Tengelmann satisfy preconditions to put EDEKA/Plus ...
Dec 9, 2008 · EDEKA is now able to take over Tengelmann's discount activities in the food retail sector (Plus) and continue them under the name “Netto ...
[48]
GERMANY: Edeka strikes Plus deal with Tengelmann - Just Food
Nov 16, 2007 · Edeka will take a 70% stake in the venture, which will run its Netto discount outlets and Tengelmann's Plus stores. The venture will run around ...
[49]
Tengelmann close to selling its Plus discount operations in Austria ...
Oct 22, 2009 · Tengelmann is close to selling its remaining Plus discount operations in Austria, Romania and Bulgaria.
[50]
Great Atlantic & Pacific Tea Company, Inc. (A&P) | Britannica Money
In 2015 the company declared a second bankruptcy with the intention of liquidating all its assets. The last remaining A&P supermarkets were closed or sold by ...
[51]
Edeka takes over Netto Marken Discount shares of Tengelmann
Mar 26, 2021 · The market leading German retail company will take over the remaining ten percent stake of the Tengelmann Group in the discount chain on January ...<|control11|><|separator|>
[52]
Noerr advises Tengelmann group on restructuring KiK and TEDi ...
Dec 23, 2020 · In return, the H.H. group will acquire the Tengelmann group's share in non-food discounter TEDi with effect from 30 April 2021. After more than ...
[53]
Tengelmann E-Commerce - Deutsche Startups
Die Tengelmann E-Commerce GmbH ist eine Tochter der Unternehmensgruppe Tengelmann. Sie wurde 2010 mit Sitz in Mülheim gegründet und bündelt.
[54]
Tengelmann E-Stores GmbH Selects RichRelevance to Leverage ...
Leading German retailer partners with RichRelevance to deliver personalized product recommendations on Plus.de and GartenXXL.de.
[55]
[PDF] Inhaltsverzeichnis - Dr. Lademann & Partner
„Tengelmann E-Commerce GmbH“, die ihre Aktivitäten 2001 mit der Eröffnung des. Plus Online Shops begonnen hatte. Gleichzeitig beteiligt sich Tengelmann an ...
[56]
[PDF] Private Equity - VC Magazin
der Gründung der Tengelmann E-Commerce GmbH als. 100%ige Tochter des Konzerns erfolgte 2009 die kon - sequente Weiterentwicklung dieses Geschäftsmodells. Die ...
[57]
Bundeskartellamt prohibits takeover of Kaiser's Tengelmann by ...
Apr 1, 2015 · The Bundeskartellamt has prohibited the acquisition of around 450 Kaiser's Tengelmann outlets by EDEKA. In the authority's view the project ...Missing: wholesale | Show results with:wholesale
[58]
[PDF] Case Summary - Bundeskartellamt
Jul 6, 2015 · Prohibition of acquisition of Kaiser´s Tengelmann outlets by Edeka. Sector: Food retail trade. Ref: B2 – 96/14. Date of Decision: 31 March 2015.<|separator|>
[59]
EDEKA/Kaiser's Tengelmann-prohibition of merger overridden by ...
Mar 18, 2016 · EDEKA/Kaiser's Tengelmann-prohibition of merger overridden by Minister for Economic Affairs in Germany-politics trump competition law? · Filed ...Missing: disputes | Show results with:disputes
[60]
Edeka, Kaiser's Tengelmann deal cleared in Germany after ... - MLex
Mar 17, 2016 · Bundeswirtschaftsminister Sigmar Gabriel hat heute eine Ministererlaubnis für die geplante Übernahme von Kaiser's Tengelmann durch EDEKA erteilt ...Missing: date | Show results with:date
[61]
[PDF] Do Retail Mergers Affect Competition? Evidence from Grocery ...
This study estimates the price effects of horizontal mergers in the U.S. grocery retailing industry. We examine fourteen regions affected by mergers including ...
[62]
[PDF] Retail mergers that benefit consumers and producers - CRESSE
Abstract. In this paper, we provide conditions, under which retail mergers lead to lower consumer prices and higher producer profits.
[63]
EDEKA “wedding rebates” – German Federal Supreme Court ...
Allegedly, EDEKA had requested suppliers to agree to a number of preferential conditions to finance its take-over of “Plus” discount markets from Tengelmann ( ...
[64]
https://nypost.com/2024/04/17/world-news/billionaire-presumed-dead-may-be-alive-in-moscow-reports/
[65]
Billionaire Karl-Erivan Haub, presumed dead, may be living in ...
Apr 17, 2024 · A billionaire long believed to have died in a skiing accident may actually be alive and living with a younger woman in Moscow, new evidence has suggested.
[66]
Family of missing German businessman give up hope he is alive
Apr 13, 2018 · Karl-Erivan Haub is the fifth generation of the family to run the business which was founded in 1867 as an importer of coffee and tea.Missing: operations | Show results with:operations
[67]
German retailer taps leadership after co-CEO goes missing
Apr 18, 2018 · Haub said in a statement that his brother's loss “is a tragedy for our family, but it does not threaten the continued existence of our family ...Missing: disappearance | Show results with:disappearance
[68]
Billionaire declared dead is 'living with mistress in Moscow'
Apr 16, 2024 · Karl-Erivan Haub disappeared in the Swiss Alps in 2018, but theories abound of a secret double life.Missing: presumed | Show results with:presumed
[69]
Does 'Dead' Billionaire Really Have Secret New Life in Moscow With ...
Apr 17, 2024 · The former managing director of the German retail giant Tengelmann, who vanished in April 2018, was officially declared dead three years later.Missing: concept | Show results with:concept<|separator|>
[70]
Ranking of the 500 largest family businesses globally
Tengelmann Group. Germany. 9.26. 1867, Retail, Private, 60,000, Haub, ≥75. 218 ... Genting Group. Malaysia. 5.95. 1965, Wealth & Asset Management, Public, 54,000 ...
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Tengelmann: Schließt 2021 mit leichtem Umsatzanstieg ab - Gabot.de
Aug 1, 2022 · Mit einem Konzernumsatz von 8,4 Mrd. Euro (Vorjahr: 8,3 Mrd. Euro) verzeichnete die Gruppe im Geschäftsjahr 2021 erneut ein leichtes Umsatzplus ...
[72]
Tengelmann | Transaction Details - Houlihan Lokey
The transaction was signed in May and closed on 5 June 2025. Tengelmann is a large-cap, family-owned investment company with a diversified portfolio that ...Missing: Group history<|separator|>
[73]
Hengeler Mueller advises Tengelmann on new syndicated facilities ...
Apr 13, 2023 · This Highlight gives an overview about "Hengeler Mueller advises Tengelmann on new syndicated facilities agreement".Missing: debt | Show results with:debt
[74]
Germany: The liquidation of the Kaiser's Tengelmann supermarket ...
Oct 22, 2016 · Almost 15,500 employees of the supermarket chain Kaiser's Tengelmann are faced with the liquidation of the corporation.Missing: Discount 1990s
[75]
KIK EU - KiK
Currently, there are more than 4,000 stores in 14 European countries. About 2,700 of them invite you to shop in Germany. In 1998, KiK expanded to Austria.
[76]
[PDF] Policy Statement on corporate due diligence obligations in supply ...
The Tengelmann Group, with Tengelmann Warenhandelsgesellschaft KG("TW") as its parent company, isactive nationally and internationally with over 70,000 ...Missing: economic | Show results with:economic<|separator|>
[77]
[PDF] Grocery retailing in Germany: Situation, development and pricing ...
The group of remaining food stores, which have less than 400 square metres of sales area, accounted for nearly half of total revenue in food retailing in 1980.
[78]
[PDF] The Effect of Mergers on Retail Prices: Evidence from Germany
Abstract. This paper estimates the effects of a merger between a German supermarket chain and a dis- counter on consumer prices. We exploit the fact that ...Missing: job | Show results with:job