BMIFlyer
Topic Author
Posts: 8065
Joined: Mon Feb 23, 2004 7:11 am

Arcandor Files For Bankruptcy

Tue Jun 09, 2009 11:50 am

The German government has rejected a request for 650m euros ($930m; £561m) of loan guarantees from Arcandor, owner of Karstadt and 52% of Thomas Cook.

http://news.bbc.co.uk/1/hi/business/8088953.stm

The Bankruptcy is showing as "Breaking News" on BBC

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

[Edited 2009-06-09 05:14:52]

[Edited 2009-06-09 05:22:20]
Sometimes You Can't Make It On Your Own
 
BMIFlyer
Topic Author
Posts: 8065
Joined: Mon Feb 23, 2004 7:11 am

RE: Arcandor Files For Bankruptcy

Tue Jun 09, 2009 12:26 pm

Sometimes You Can't Make It On Your Own
 
MD11Engineer
Posts: 13916
Joined: Sun Oct 26, 2003 5:25 am

RE: Arcandor Files For Bankruptcy

Tue Jun 09, 2009 4:06 pm

Especially since the owners, who have several billions in their backpockets, were not willing to support their own business, expecting the government to do so instead. There is an article in this week's Spiegel magazine about it.

Jan
Je Suis Charlie et je suis Ahmet aussi
 
User avatar
LTU932
Posts: 13065
Joined: Fri Jan 06, 2006 12:34 am

RE: Arcandor Files For Bankruptcy

Tue Jun 09, 2009 7:16 pm



Quoting MD11Engineer (Reply 2):
Especially since the owners, who have several billions in their backpockets, were not willing to support their own business, expecting the government to do so instead.

Upper management at Arcandor is too busy using that money for their own Golden Parachutes, that's for sure.

I don't care if this is an economic crisis or not, we should NOT bail out every business that is close to bankruptcy. Arcandor (which includes the Karstadt chain) can easily be replaced with other companies.
 
gkirk
Posts: 23345
Joined: Thu Jun 15, 2000 3:29 am

RE: Arcandor Files For Bankruptcy

Tue Jun 09, 2009 9:43 pm

Frigging Germans  Yeah sure

Should have let Condor stay as Thomas Cook, but nooo...  Yeah sure
When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
 
MD11Engineer
Posts: 13916
Joined: Sun Oct 26, 2003 5:25 am

RE: Arcandor Files For Bankruptcy

Wed Jun 10, 2009 7:08 am

Together with Mrs. Schickedanz, Arcandor owns the department store chain Karstadt / Wertheim as well as the mail order shop Quelle. Both of them have been in difficulties since years.
Additionally they own a few profitable businesses, like the Berlin luxury department store KaDeWe.
Still, among the owners, they have several billion Euros in the backpocket, enough to save the businesses, but They'd rather keep their billions and have the tax payer shoulder the expenses (remember, this year there are several important elections in Germany, including the federal one, so no political party wants to be blamed for unemployed).
Porsche seems to be a similar case. They could easily save themselves e.g. by selling their Volkswagen shares or by having the owner family Porsche / Piech inject some money (they have enough), but no, they demand public assistance.

Jan
Je Suis Charlie et je suis Ahmet aussi
 
PanHAM
Posts: 8528
Joined: Fri May 06, 2005 6:44 pm

RE: Arcandor Files For Bankruptcy

Thu Jun 11, 2009 11:50 am



Quoting MD11Engineer (Reply 5):
Still, among the owners, they have several billion Euros in the backpocket, enough to save the businesses, but They'd rather keep their billions and have the tax payer shoulder the expenses (remember, this year there are several

You are wrong about that. The wealth of Mrs. Schickedanz was mainly her share in Arcandor. Once the company declared insolvency (similar to chapter 11), that wealth has gone up in smoke.

She is no loner a billionaire, simple as that. It is reported that she is now worth a small triple digit million amount and the bulk of that is colateral of a loan from her house bank. She may not have to queue up for welfare, but she had definately not enough money to help saving Arcandor.

BTW, she invested about 600 million of her own money outside Arcandor a few years ago to save the company. This money is lost as well now. She had no legal responsibility to do so and could have abandoned Karstadt/Quelle then,

You get a couple of things wrong about Porsche as well, but that's another story.
powered by Eierlikör

Who is online

Users browsing this forum: ZeeZoo and 44 guests