Germany: Karstadt employees ready to major sacrifices to keep their job

Judicial settlement with conditions. Gathered for a decisive assembly on November 10 in Essen, the creditors unanimously voted in favor of continuation for Karstadt, subsidiary of the bankrupting Arcandor. In addition, they asked Klaus Huber Gorg, the official receiver, to write an insolvency plan (Insolvenzplan) and find a buyer. Shortly before that, the official receiver vigorously defended this solution, explaining that liquidation wouldn’t be nearly as profitable for the creditors. However, Mr. Gorg pointed out that the chances of successful bankruptcy would depend on the concessions made by all the parties involved, including the real estate firms which own the 126 Karstadt subsidiaries, logistics and computing service providers, or even the group’s 28,000 employees.
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. In addition, they asked Klaus Huber Gorg, the official receiver, to write an insolvency plan (Insolvenzplan) and find a buyer. Shortly before that, the official receiver vigorously defended this solution, explaining that liquidation wouldn’t be nearly as profitable for the creditors. However, Mr. Gorg pointed out that the chances of successful bankruptcy would depend on the concessions made by all the parties involved, including the real estate firms which own the 126 Karstadt subsidiaries, l

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