Date:19 July 2012
German firm Neckermann applies for bankruptcy protection
The German mail-order company Neckermann has announced that it is applying for bankruptcy protection from creditors. Earlier this week Neckermann had tried unsuccessfully to convince its owner that cost-cutting plans would produce a viable business.
Although it said that it would examine all options to keep the business going, Neckermann’s owner said its plan was not sustainable and refused to provide further financing. It had outlined moves to cut 1,380 of its 2,400 jobs in Germany and had agreed with employee and union representatives on a compromise that would have seen "limited" payoffs and other aid for laid-off employees.
Private investment firm Sun Capital Partners owns 100% of Neckermann.