German retail group Arcandor widens insolvency
Berlin - German retail group Arcandor widened its insolvency Wednesday, applying for court protection for 15 more subsidiaries - as one of Germany's biggest-ever corporate bankruptcies gathered pace.
Arcandor, which operates mail-order businesses in 28 countries, a chain of 90 Karstadt department stores in Germany and three renowned luxury department stores, was in trouble well before the downturn.
Four core units filed on June 9 for protection, affecting 43,000 employees. The latest move extends that to outfits with some 6,700 staff, including the Quelle mail-order brand's distribution centres.
Last week the government in Berlin refused to give Arcandor state- backed credit or an emergency loan, but it has encouraged Arcandor to apply for a special loan to assist a break-up and sale.
Italian and French groups have shown interest in buying its three luxury department stores in Berlin, Hamburg and Munich.(dpa)