Thomas Middelhoff, former chief executive of German media giant Bertelsmann and distribution giant Arcandor, was jailed for three years by a court Friday for tax evasion and fraud.
The former chairman of the bankrupt retail giant Arcandor, Thomas Middelhoff, has lashed out at his accusers as he prepares to fend off their claim for €175 million in damages.
The biggest clearance sale in German history started with a whimper rather than a bang on Sunday, when the website of bankrupt mail-order giant Quelle collapsed.
Bankrupt mail order company Quelle is relying on the goodwill and trust of its suppliers as it has not had any money for three weeks, it emerged over the weekend.
Officials in the southern German state of Bavaria said Friday they would contribute €20 million ($28 million) in aid to save Quelle, a mail-order unit of the insolvent retailer Arcandor.
Prosectors in Essen said Friday they are investigating former Arcandor CEO Thomas Middelhoff for criminal breach of trust for real estate dealings he had with the now-bankrupt retail giant.
Germany top retailer Metro wants to snap up distressed rival Arcandor and possibly list a new group on the stock exchange, Metro boss Eckhard Cordes said on Wednesday.
Retail and tourism giant Arcandor said on Tuesday it had filed for bankruptcy, putting around 43,000 jobs at risk in Germany after Berlin dismissed its request for emergency state aid.
The German government rejected a plea Monday by troubled retail group Arcandor for emergency loans and guarantees, as the leading shareholder in travel agency Thomas Cook lurched towards insolvency.
German Chancellor Angela Merkel on Saturday said she was against bailing out struggling retail giant Arcandor and accused the company’s management of making serious mistakes.
The future of stricken German retailer Arcandor and its 50,000 employees looked bleak this week after the European Commission said it would take a dim view of any state aid.
After managing the bailout and sale of Opel, German politicians are debating whether troubled retailer Arcandor, which owns the Karstadt department store chain, should get a loan from the government.
The German government has denied the request of struggling retail and tourism corporation Arcandor for a financial boost of €650 million, daily <i>Handelsblatt</i> reported on Tuesday.
Public workers’ union Verdi has encouraged the German government to provide aid for ailing retail and travel company Arcandor, which runs household names like the Karstadt department stores and Thomas Cook travel agency, the <i>Westdeutsche Allgemeine Zeitung</i> reported on Wednesday.
