Thin air

Thomas Middelhoff has cracked the whip at KarstadtQuelle. He installed a new management team, slashed 10,000 jobs and cleared the firm’s heavy debts by selling off its property portfolio. But the shares have raced ahead of themselves, tripling in value since he took the helm in May 2005. They now seem to be discounting a full blown recovery. But there isn’t much evidence of a turnaround. The group’s sales fell in the first quarter of this year and it is still losing money. Most of its city cent...