Financial Times FT.com

Aid rejection sends Arcandor into insolvency

By Gerrit Wiesmann in Frankfurt and Chris Bryant in Berlin

Published: June 9 2009 21:22 | Last updated: June 9 2009 21:22

Europe suffered one of its biggest corporate failures outside the banking sector since the start of the financial crisis when Germany’s Arcandor retail group filed for insolvency.

Its collapse followed weeks of pleading for help from the German government, which in May agreed €1.5bn of bridge financing to keep afloat Opel, General Motors’ European unit, ahead of its sale to a group led by Canada’s Magna.

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