Jump to content
House Price Crash Forum
Sign in to follow this  
gruffydd

Thomas Cook's Majority Stake Owner Bites The Dust

Recommended Posts

Just filed for bankruptcy.

BERLIN -- German retailer Arcandor AG says it has filed for bankruptcy protection, a day after the government rejected its bid for state-backed emergency credit.

Arcandor said in a statement Tuesday that it had filed with the district court in Essen, where it is based.The company says travel company Thomas Cook would not be affected by the filing.

Edited by gruffydd

Share this post


Link to post
Share on other sites

http://uk.biz.yahoo.com/09062009/323/43-00...giant-bust.html

Tuesday June 9, 01:01 PM

43,000 jobs at risk as German retail giant goes bust

BERLIN (AFP) - Retail and tourism giant Arcandor (Xetra: 627500 - news) said on Tuesday it had filed for bankruptcy with the likely loss of around 43,000 jobs in Germany, after Berlin dismissed its request for emergency state aid.

"Arcandor AG today filed with the Essen District Court to open insolvency proceedings due to threatening illiquidity," the statement said.

Travel agency Thomas Cook, in which Arcandor holds a 52-percent stake, "will remain unaffected by the insolvency proceedings," the statement added.

The group, which employs 70,000 people in Europe, two-thirds of whom work in Germany, said its department store chain Karstadt, as well as mail-order company Quelle, would also be affected by the insolvency.

Click to enlarge photo

On Monday, Berlin rejected the company's request for 650 million euros (902 million dollars) in state loan guarantees and 437 million euros in emergency loans but gave the firm one last chance to submit an improved bid.

But following an emergency meeting, the firm's board said it could no longer raise funds after the government rejected its plea for help.

"The insolvency application became necessary after Arcandor AG's requests for state loan guarantees and rescue aid were rejected and further requirements couldn't be fulfilled," the group said.

"As a result the company had no further prospects for sustainable financing."

"Given the fact that loans in the amount of 710 million euros will shortly become due, the company will be threatened with insolvency as of 12 June 2009," the statement said.

The German government's decision not to intervene to save the firm followed its efforts two weeks ago to keep carmaker Opel and its 25,000 workers afloat with billions of euros in aid.

Chancellor Angela Merkel has insisted, however, that Opel represented a "special case" and that Arcandor was in trouble already before the recession.

To qualify for funds from the so-called "Germany Fund" set up to help companies suffering in the economic crisis, firms must prove they were healthy before the financial crisis and have a solid plan for the future.

The chairman of Arcandor's board, Karl-Gerhard Eick, said: "Even as the insolvency proceedings are ongoing, we will continue to fight to save as many jobs and locations as possible."

Share this post


Link to post
Share on other sites

http://news.bbc.co.uk/1/hi/business/8091298.stm

Germany's Arcandor, which owns 52% of Thomas Cook, has filed for bankruptcy protection after the German government rejected a request for loan guarantees.

Arcandor, which employs about 70,000 people, had sought 650m euros ($930m; £561m) of guarantees because about 600m euros of its loans need refinancing.

recovery!!!!!!!!!!!!!!

House Prices go up amongst soaring unemployment as more people choose to stay at home in their tiny itty bitty flats and cupboards that they buy by the dozen because they like them so much.

Share this post


Link to post
Share on other sites
thomas cook shares UP!

That's because we didn't buy any.

Had we bought them, they would have gone down.

Share this post


Link to post
Share on other sites

They were doomed even before this crisis started, their business is base on old fashioned centre-of-town department stores (sort of comparable to John Lewis, pricewise and product range) and general mail order catalogue sales.

They have been put out of business by changing consumer behaviour, online shopping, out-of-town cut price retailers and their relatively high prices and cost-base.

Share this post


Link to post
Share on other sites
They were doomed even before this crisis started, their business is base on old fashioned centre-of-town department stores (sort of comparable to John Lewis, pricewise and product range) and general mail order catalogue sales.

They have been put out of business by changing consumer behaviour, online shopping, out-of-town cut price retailers and their relatively high prices and cost-base.

To be honest, they may make a come back. Have you tried booking separate flights, hotels and cars etc on the internet? Credit card companies are so twitchy about large transactions now that it's nearly impossible to simultaneously book these things without something being rejected. You end up with hotel accommodation but no flights.

I think I may go back to booking with travel agents.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.