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The owner of Karstadt has gone bust!

#1
Arcandor, the owner of Karstadt (for those who have not served in Germany, it is a huge chain of department stores (think of a cross between John Lewis and Debenhams) with a store in each major town) and Thomas Cook, one of our largest travel agencies, has filed for bankruptcy.

BBC news report

This is a huge failure; do the Germans have fire sales? And will there be cheap holidays from Thomas Cook?

Litotes
 
#2
It's been a while since I was last across there, but I don't recall Karstadt having a national competitor. Will their demise create a vacuum that MUST be filled - by department stores from other nations, perhaps?

If 70,000 people suddenly turn up outside the Job Centre, we'll have to watch out for road building initiatives...
 
#3
It's not only Karstadt, they own Thomas Cook and Quella as well - all very big companies.

Also KaDeVe is apparently in trouble as well.
 
#4
I suppose this is the outcome of a nation that relies heavily on cash transactions. In any financial crisis, the people will just stop spending, leaving the retailer twiddling his thumbs. At least with credit, banks would be more likely (?) to extend loans, knowing that there'd still be an income dribbling in, thereby reducing their risk.
 

Alsacien

MIA
Moderator
#5
putteesinmyhands said:
It's been a while since I was last across there, but I don't recall Karstadt having a national competitor. Will their demise create a vacuum that MUST be filled - by department stores from other nations, perhaps?

If 70,000 people suddenly turn up outside the Job Centre, we'll have to watch out for road building initiatives...
Kaufhof (Galleria Horton in some towns I think)
 
#6
The Thomas Cook website indicates that while a major stockholder has gone bust it will not affect Thomas Cook:

Thomas Cook would like to reassure its customers and suppliers that there is no cause for concern following the announcement from Arcandor AG, Thomas Cook Group plc's majority shareholder, that it has today (09 June 2009) applied to commence insolvency proceedings.

Thomas Cook is a completely independent company from Arcandor, and today’s announcement will have no impact on our financial position or operational performance. As a standalone company, Thomas Cook Group plc is listed separately on the London Stock Exchange and is completely ring-fenced.

Please be assured that it’s business as usual. There is no impact whatsoever on the holidays and services Thomas Cook provides for its customer
 
#7
DavidBOC said:
The Thomas Cook website indicates that while a major stockholder has gone bust it will not affect Thomas Cook:

Thomas Cook would like to reassure its customers and suppliers that there is no cause for concern following the announcement from Arcandor AG, Thomas Cook Group plc's majority shareholder, that it has today (09 June 2009) applied to commence insolvency proceedings.

Thomas Cook is a completely independent company from Arcandor, and today’s announcement will have no impact on our financial position or operational performance. As a standalone company, Thomas Cook Group plc is listed separately on the London Stock Exchange and is completely ring-fenced.

Please be assured that it’s business as usual. There is no impact whatsoever on the holidays and services Thomas Cook provides for its customer
Until an asset stripper buys up Arcandor's interest at cut price...
 
#8
The Germans have had several (5+) million unemployed far longer than we have and kept it under the radar (reliable source, my brother is a civvy and works in Germany). Their 400 Euro a month pay plan was going to work as long as the rest of Europe didn't notice.
Now the recession is starting to hit mainland Europe the UK may have a chance as we have a head start in sorting ourselves out.
May do the the holiday (not Thomas Cook) after all. Think the exchange rate may be about to pick up rapidly.
 
#9
German radio tonight are saying with Karstadt and Quella, there are approximately 340,000 jobs at risk. Also went on about the honouring of warrenties on items bought ie white goods, tv's etc.
 
#11
putteesinmyhands said:
Recce19 said:
... there are approximately 340,000 jobs at risk.
That's it, then. If you're going to need plywood soon, get it now. Otherwise it'll all end up in Germany for the glider industry.

The Boxheads are experts at combating recession.
Cnut! I just spat my beer out reading that :lol:
 

samm1551

Old-Salt
Book Reviewer
#12
There is another shop that's quite like it, but for the life of me I cannot remember the name of it..it's in Hannover and has a green and white sign (like that's useful).
 
#13
I think it tells a story when the major shareholders, one of whom has around € 4,000,000,000 as her own personal fortune, are unwilling to inject their own cash into Karstadt. Fact is Karstadts fortunes are partly their own fault ie gash management, plus of course people no longer buy in the big warehouses, it's all internet business. There is however allegedly some hope as Karstadt may continue to exist, but in a slimmed down version.
 

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