Arcandor files for insolvency


Arcandor filed for insolvency today after its application for
emergency state aid was rejected by the German government. The
bankruptcy protection covers Arcandor’s Karstadt department
stores and Primondo’s Quelle catalogue business but excludes
Thomas Cook Plc, the HSE24 TV-shopping channel and Primondo’s
speciality brands such as Afibel, Baby-Walz and El�gance.

A total of 43,000 employees are affected, but have been told
their salaries are secure for the next three months paid by the
German Federal Employment Agency as part of the insolvency
allowance.

As part of proceedings, the companies will continue to operate as
usual.

It is understood that German retailer Metro is interested in some
of Karstadt’s department stores, whilst home shopping group Otto
expressed an interest in some of Primondo’s speciality titles.

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