The break-up or liquidation of parts of troubled German retail group Arcandor has become more likely after the group’s restructuring adviser quit.
Horst Piepenburg, one of Germany’s top restructuring experts, said Arcandor’s revival plans were “without foundation” because leading shareholder Sal Oppenheim – a private bank – was providing “no support”, the Financial Times reported.
The fallout increases the likelihood that department store business Karstadt and mail order outfit Primondo will be sold off in parts or entirely liquidated.
That would be a blow to Arcandor boss Karl-Gerhard Eick, who is keen to keep the group together.
Sal Oppenheim partners propped up Arcandor last Christmas with the injection of emergency capital, making them the biggest shareholder. Partners are understood to have refused a request for more money.
Arcandor filed for insolvency at the start of June.