Germany's Globus close to deal for 58 Max Bahr stores -sources
FRANKFURT Nov 26 (Reuters) - Fifty-eight of the 73 stores of insolvent German home improvement retailer Max Bahr are likely to be saved in a deal with supermarket chain Globus, two people familiar with the negotiations said on Tuesday.
Max Bahr was due to start clearance sales on Wednesday, like those currently being held at stores of its parent company Praktiker, which has also filed for insolvency.
But German group Globus has reached a last-minute agreement with Royal Bank of Scotland, which owns 66 of Max Bahr's stores, and contracts should be signed on Wednesday, one of the sources said.
The second source said talks were still ongoing and that the situation looked promising.
German newspaper Hamburger Abendblatt had earlier reported the deal.
Praktiker shares, which have lost 98 percent of their value over the past year, were up 12 percent at 0.028 euros ($0.04) at 1557 GMT.
RBS and Max Bahr's insolvency administrator declined to comment. A Globus spokesman was not immediately available to comment.
Praktiker, whose blue and yellow branded stores selling paints, tools and gardening products are a familiar sight in Germany's out-of-town shopping centres, filed for insolvency in July after talks with creditors failed.
The creditors had hoped that selling the more profitable Max Bahr chain could help them recover some of their losses, but those hopes died when Max Bahr also filed for insolvency.
Talks to sell Max Bahr to rival Hellweg failed last week over demands from RBS. The administrator for Max Bahr said at the time that 3,600 jobs were at risk.
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