This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8091298.stm
The article has changed 6 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Germany's Arcandor in bankruptcy | Germany's Arcandor in bankruptcy |
| (19 minutes later) | |
| Germany's Arcandor, which owns 53% of Thomas Cook, has filed for bankruptcy protection after the German government rejected a request for loan guarantees. | Germany's Arcandor, which owns 53% 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 would "remain unaffected". | However, it added that Thomas Cook would "remain unaffected". |
| Thomas Cook 'ring-fenced' | Thomas Cook 'ring-fenced' |
| Thomas Cook is the only profitable part of Arcandor, and the German firm's 52.8% stake in the travel firm is worth about 1bn euros. | Thomas Cook is the only profitable part of Arcandor, and the German firm's 52.8% stake in the travel firm is worth about 1bn euros. |
| This will have no impact on holidays - customers should not be concerned whatsoever Thomas Cook | This will have no impact on holidays - customers should not be concerned whatsoever Thomas Cook |
| Thomas Cook moved quickly to reassure its customers that they would not be affected by the problems at Arcandor. | Thomas Cook moved quickly to reassure its customers that they would not be affected by the problems at Arcandor. |
| The holiday operator said it was "completely ring-fenced" from Arcandor and that the two companies were operationally and financially distinct. | The holiday operator said it was "completely ring-fenced" from Arcandor and that the two companies were operationally and financially distinct. |
| "We've been around for 167 years and will be for many more," a spokesperson for Thomas Cook told the BBC. | "We've been around for 167 years and will be for many more," a spokesperson for Thomas Cook told the BBC. |
| "This will have no impact on holidays - customers should not be concerned whatsoever." | "This will have no impact on holidays - customers should not be concerned whatsoever." |
| Shares in Thomas Cook in London closed up 10% at 235.75p, and earlier on Tuesday had jumped as much as 14% on reports that German firm Rewe could buy Arcandor's stake in the travel firm. | |
| In a statement, Thomas Cook said it had not received any approach for the stake or the company as a whole. | In a statement, Thomas Cook said it had not received any approach for the stake or the company as a whole. |
| Crisis fund | Crisis fund |
| Chancellor Angela Merkel had insisted that no state aid would be available for Arcandor 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 for Arcandor 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 | 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. | "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 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. | 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. | 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 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. | Shares in the company have dropped 76% this year, and fell 81% last year. |