German Thomas Cook Owner Files BankruptcyBusiness | June 9, 2009, Tuesday // 15:33| views
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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