The company which owns Germany’s Karstadt department-store chain,is seeking a 437 million euro bailout from the state-owned development bank KfW Group.
Arcandor is battling to stave off bankruptcy and says the loan will enable it to keep going for another 6 months. According to a recent study Arcandor will post a half year operating loss of 360 million euros. It needs refinancing of about 650 million euros to avoid going bankrupt next week. The German government is split on whether to bail out another national corporate icon after recently rescuing Opel.