KarstadtQuelle, the struggling German retail group preparing to raise €1.6bn ($2bn), has hired private equity and turnaround specialist Harald Pinger as chief financial officer to drive a sale of shares and assets.

KarstadtQuelle is raising €500m from a rights issue and expects €1.1bn from the sale of more than a third of its 181 retail outlets and part of its mortgage business, understood to be worth up to €250m.