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| Germany's Arcandor in bankruptcy | |
| (30 minutes later) | |
| Germany's Arcandor, which owns 52% of Thomas Cook, has filed for bankruptcy protection after the German government rejected a request for loan guarantees. | 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. | Arcandor, which employs about 70,000 people, had sought 650m euros ($930m; £561m) of guarantees because about 600m euros of its loans need refinancing. |
| Arcandor said its bankruptcy filing covered German retailer Karstadt and its mail-order businesses. | Arcandor said its bankruptcy filing covered German retailer Karstadt and its mail-order businesses. |
| However, it added that Thomas Cook "will remain unaffected". | However, it added that Thomas Cook "will remain unaffected". |
| Last week, a Thomas Cook spokeswoman had said the travel company was "completely ring-fenced" from Arcandor and that the two companies were operationally and financially distinct. | Last week, a Thomas Cook spokeswoman had said the travel company was "completely ring-fenced" from Arcandor and that the two companies were operationally and financially distinct. |
| Shares in Thomas Cook in London rose 6.9% to 229 pence. | Shares in Thomas Cook in London rose 6.9% to 229 pence. |
| Crisis fund | Crisis fund |
| Chancellor Angela Merkel had insisted that no state aid would be available unless unless the company put together a viable plan and its owners and banks put in more money. | Chancellor Angela Merkel had insisted that no state aid would be available unless unless the company put together a viable plan and its owners and banks put in more money. |
| WHO IS ARCANDOR? Owned the majority of Thomas Cook since 2007Owns 120 Karstadt department stores, a mainstay on Germany's High StreetsAlso owns the Primondo mail-order and Quelle catalogue businessesArcandor also sells financial products and athletic equipment50,000 of its employees are based in Germany | |
| "This was an unavoidable step, but one which can be used to create new opportunities," Mrs Merkel said. | |
| The German government has been reluctant to help Arcandor, because the company was in trouble before the economic crisis. | |
| The government has a 100bn-euro fund to provide temporary loans for firms hit by last year's financial crisis and its aftermath, but this does not apply to companies that first got into difficulties before 1 July 2008. | |
| Arcandor has been in talks with rival Metro on a merger of their department stores, as well as appealing to the government for help. | Arcandor has been in talks with rival Metro on a merger of their department stores, as well as appealing to the government for help. |
| Reports suggest that Metro was looking into buying 60 of Arcandor's Karstadt stores, and German firm Otto, world's biggest mail order group, might be interested in parts of Primondo. | |
| Shares in Arcandor, formerly known as KarstadtQuelle, fell 33% to 71 euro-cents. They were suspended earlier in the day. | |
| Shares in the company have dropped 76% this year, and fell 81% last year. |