Home / Knowledge / News / Apparel/Garments / Retail giant files for bankruptcy, Chinese companies in soup
Retail giant files for bankruptcy, Chinese companies in soup
18
Jun '09
The German retail giant, Arcandor Group has formally filed for bankruptcy and reorganization on June 10. This has affected more than 10 textile and garment enterprises in Dalian city and the amount involved is over US $4 million.

The Arcandor Group, founded in 1881, had gradually established its leading position in world apparel industry since the last 128 years and had over 54,000 employees on its roles with sales reaching 20.47 billion euros in fiscal year of 2008.

Since the company had a long history and dominant position in apparel industry, Chinese enterprises did not hesitate to accept the harsh payment condition of 120 days after shipment as proposed by the group.

Before the financial crisis hit Europe, the group was already facing financial and operational problems. The Group had made an application for assistance before it filed for bankruptcy, but the Government did not accept the same.

The Group's bankruptcy is one of the largest events of bankruptcy. According to the Export Credit Insurance Corporation of China, the Group currently has given out orders totaling to more than US $20 million in China.

A conservative estimate shows that more than US $4 million of products have already been exported to the Group by Dalian enterprises. The largest outstanding amount is over US $1 million, and the smallest amount is US $100,000.

It is learned that four export enterprises had applied to the insurance company staking claim for around US $1.7 million. Chinese enterprises can obtain more than 80 percent compensation based on the contracts.

Fibre2fashion News Desk - China

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search