The insolvency administrator owned by parent company Arcandor – which is also insolvent – received no bids for the company by its deadline over the weekend.
“After intense negotiations with a number of investors, the insolvency administrator and the committee of creditors no longer see an alternative to liquidation,” Arcandor administrator Klaus Hubert Görg told daily Süddeutsche Zeitung.
Employees were to be informed of their situation on Tuesday.
“This is a huge catastrophe for the affected people and their families,” works council head Ernst Sindel said, adding that he was shocked by the company’s demise. “It’s also a particular catastrophe for the Nuremberg region.”
Parts of the company, founded in 1927, will be dissolved, and the rest sold off, and it is likely that there will be no money set aside for the employee retraining programmes, Sindel said.
“Therefore we need to worry about this immediately,” he said, adding that there was still hope for aid from the state of Bavaria and the federal government “to at least cushion those affected.”