US investment firm NRDC Equity Partners and entrepreneur Bernd Beetz are in final negotiations to acquire Galeria Karstadt Kaufhof, a struggling department store chain.

The announcement of the new investor and owner will be made by Insolvenzverwalter Stefan Denkhaus at the company's headquarters on Wednesday.

An Insolvenzplan is expected by the end of April, pending court and creditor approval, following the opening of Insolvenzverfahren last week.

Galeria Karstadt Kaufhof, with 92 stores and 12,800 employees, has faced financial challenges after the insolvency of owner René Benko.

A creditors' meeting in May will decide the future of the chain, with the goal to secure and invest in over 60 stores, despite not including property assets in the purchase.

NRDC and Beetz have previous experience with the company, suggesting familiarity with the business and its challenges.

Negotiations are complex due to stakeholder interests and high rents, with plans to renegotiate rents and potentially close additional stores.

The fate of remaining locations is uncertain, with regional hopes in Niedersachsen to preserve jobs and stores, though the new ownership's exact plans are not yet clear.

Concerns persist about the long-term viability of the department store model and the new owners' capacity to rejuvenate the business.