German retail giant Arcandor has filed for bankruptcy: statement

Retail and tourism giant Arcandor, which employs 50,000 people in Germany,
has filed for bankruptcy after Berlin dismissed its request for emergency
state aid, the group said . "Arcandor AG today filed with the Essen District
Court to open insolvency proceedings due to threatening illiquidity," the
statement said. However, travel agency Thomas Cook, in which Arcandor holds
a 52 percent stake, "will remain unaffected by the insolvency proceedings,"
the statement added. The group said its department store chain Karstadt, as
well as mail-order company Quelle, had also filed for bankruptcy.

GERMAN retail giant Arcandor’s application for bankruptcy last week has left
Indian exporters, who supply to it, worried about their dues. Exporters
claim that they have not been paid for the textile and made-ups supplied to
the company’s arms — Karstadt and Quelle — since January this year, and now
that the company has filed for bankruptcy, they do not know whom to
approach. Exporters have requested the commerce department to take up the
issue with the German government.
   “We had been supplying textiles and made-ups to Arcandor for the past 15
years and never had any payment problems. It is only in the last six months
that they stopped making payments. We never suspected that they would go
bankrupt, as they have been around for so long,” Noida-based exporter Mukesh
Mittal told ET.
   Mr Mittal claims that he has not been paid for goods worth Rs 70 lakh.
According to the Delhi Exporters Association, about 70-80 Indian exporters
have payment dues totalling at least Rs 150 crore, which has not been made
by the company.

http://news.id.msn.com/business/article.aspx?cp-documentid=3370381

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