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Arcandor on brink of bankruptcy

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Arcandor on brink of bankruptcy

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With time running out for German retailer Arcandor to avoid bankruptcy, thousands of the company’s workers have marched to draw attention to their plight, but the Berlin government has rejected a request for hundreds of millions of euros in state guarantees.

Arcandor – which was struggling before the economic crisis hit – wanted money from a special government rescue fund for crisis-hit companies, but the economy minister said: “Before seeking public money, it’s important they turn to the existing investors and interested parties. And I welcomed that fact that Arcandor was talking with the German retailer Metro, but I understand those talks went nowhere. I call on the two to continue those discussions without delay.” The last chance for the group, which includes department store chain Karstadt and travel agent Thomas Cook is if the government’s KfW investment bank grants it a 437 million euro loan, but government sources said that is unlikely.