German Thomas Cook Owner Files Bankruptcy

Arcandor, which employs about 70 000 people, had sought EUR 650 M of guarantees because about EUR 600 M of its loans need refinancing. File photo

Germany's Arcandor, which owns 52% of the travel company, Thomas Cook, has filed for bankruptcy.

This happened after the German government rejected a request for loan guarantees to Arcandor, the BBC reported.

Arcandor, which employs about 70 000 people, had sought EUR 650 M of guarantees because about EUR 600 M of its loans need refinancing.

Arcandor said its bankruptcy filing covered German retailer Karstadt and its mail-order businesses.

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.

 

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