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09.06.2009 |
Arcandor AG files to open insolvency proceedings with Essen District Court |
Essen, 9 June 2009. Arcandor AG today filed with the Essen District Court to open insolvency proceedings. The aim of these proceedings is to continue the restructuring of the Company and its subsidiaries that is already underway with an insolvency plan and to ensure their existence. Along with Arcandor AG, Karstadt Warenhaus GmbH, Primondo GmbH and Quelle GmbH have also applied for protection of creditors. Thomas Cook Group plc, the specialty mail order companies of the Primondo Group and the homeshopping channel HSE24 remain unaffected by the insolvency proceedings.
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. As a result the Company had no further prospects for sustainable financing. Given the fact that loans in the amount of €710 million will shortly become due, the Company will be threatened with insolvency as of 12 June 2009.
This will affect a total of around 43.000 employees of the Arcandor Group in Germany. Employee salaries are secure for the months of June, July and August. They will be paid by the German Federal Employment Agency as part of the insolvency allowance.
As part of the preliminary insolvency proceedings, the operating companies will maintain all business activities in full. Supplier receivables for new goods deliveries will be served within the framework of the agreed payments terms as of today. All customer orders in mail order business will still be completed. Customer guarantees in place are still valid and will be met. Customers also still have a right to return goods. Any advance payments made by customers are still valid and will be deducted on final payment.
Dr. Karl-Gerhard Eick, Chairman of the Arcandor AG Management Board, commented: “I would especially like to thank our employees for their tireless dedication in the efforts to reach a positive decision for Arcandor. Even as the insolvency proceedings are ongoing, we will continue to fight to save as many jobs and locations as possible and to offer a good future for our traditional, valuable German brands.”
The main shareholders of Arcandor AG, Bankhaus Sal. Oppenheim and the Madeleine Schickedanz pool, are committed to the continuation of the Company.
The Essen District Court is expected to decide on the further course of the insolvency opening proceedings and appoint an insolvency administrator today. No information can be given on further details at this time. If further information emerges today we will release a statement to the press.
Press contact:
Arcandor AG
Corporate Communications
Gerd Koslowski
Telephone: +49 (0)201 727 25 38
gerd.koslowski@arcandor.com