German retail giant goes bust, 43,000 jobs at risk

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Berlin: German retail and tourism giant Arcandor filed for bankruptcy today, putting around 43,000 jobs at risk after Berlin dismissed the company's request for emergency state aid.

"Arcandor AG today filed with the Essen District Court to open insolvency proceedings," the group said in a statement.

"This will affect a total of around 43,000 employees of the Arcandor group in Germany. Employee salaries are secure for the months of June, July and August," the statement said.

The group, which employs 70,000 people in Europe, two-thirds of whom work in Germany, said its department store chain Karstadt, as well as mail-order company Quelle, would also be affected by the insolvency.

Travel agency Thomas Cook, in which Arcandor holds a 52-percent stake, "will remain unaffected by the insolvency proceedings," the statement added.

Chancellor Angela Merkel told reporters that Arcandor now had a chance to merge with another retail firm and named Metro, Germany's largest retailer, as a possible partner.

Metro, which employs 300,000 people in 32 countries across Europe, Asia and Africa quickly expressed an interest in taking over its stricken rival.

"We remain, as before, committed to our proposal of taking over some 60 Karstadt sites and thereby saving the majority of jobs," Metro said in a statement.