Arcandor, the insolvent German retailer, has taken another step towards a break-up by announcing it would close the domestic operations of mail-order unit Primondo, which employs about 7,000 people.

Insolvency administrator Klaus Hubert Görg said talks with “a number of investors” had failed after no bank could be found to provide so-called factoring services – which help mail-order companies bridge the gap between billing customers and receiving payments.