Karstadt CEO steps down after only months in job

BERLIN - The new chief executive of German retailer Karstadt, who only took charge in February, has stepped down, the struggling department store chain said on Monday.

Chief Financial Officer Miguel Muellenbach and Human Resources boss Kai-Uwe Weitz will lead the company after the departure of former IKEA executive Eva-Lotta Sjostedt, who was trying to restore Karstadt to profitability, the company said.

Karstadt was rescued from insolvency in 2010 by billionaire businessman Nicolas Berggruen in 2010, but unions and local media have accused him of not investing enough in the chain, allowing rival Kaufhof to steal market share.

That has stoked speculation of an eventual merger of the two even though Kaufhof's owner Metro has ruled it out.