Arcandor facts for kids
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| Public | |
| Traded as | FWB: ARO |
| Industry | Retail |
| Fate | Bankruptcy |
| Founded | 1999 |
| Defunct | 2009 |
| Headquarters | Essen, Germany |
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Number of employees
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68,000 (2005) |
Arcandor AG was a big company based in Essen, Germany. It was like a parent company that owned many smaller businesses. These businesses focused on different things, such as shopping by mail, online stores, large department stores, and travel services.
Arcandor was created in 1999. This happened when two older companies, Karstadt Warenhaus AG (started in 1920) and Quelle AG (started in 1927), joined together. In 2005, Arcandor had about 68,000 employees. It made about 15.5 billion Euros in sales each year. Its shares were traded on the German stock market until September 2009.
One of Arcandor's most famous stores was Kaufhaus des Westens, also known as KaDeWe, in Berlin. The biggest Karstadt store was located in Frankfurt.
Arcandor asked the German government for help with money. However, the European Commission said no to this request on June 3, 2009. A few days later, on June 6, 2009, Arcandor announced it could no longer pay rent for its department stores. The company had previously sold these stores and then rented them back. Just three days later, Arcandor had to declare that it was unable to pay its debts, which is called filing for bankruptcy.
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History of Arcandor
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On May 14, 1881, a man named Rudolph Karstadt opened his very first store in Wismar. It was called Karstadt fabric, factory outlet and ready-to-wear store. In 1884, he opened a second store in Lübeck. Soon, he had 24 stores all over Northern Germany. In 1920, his business became a joint stock company, which means it was owned by many shareholders.
Changes During the Nazi Era
When the Nazis came to power in Germany in 1933, many department stores that were started by certain families had their ownership changed. KarstadtQuelle gained many businesses and properties during this time.
After World War II
In 1984, Karstadt bought a company called Neckermann Versand, which was a mail-order business. Later, in 1994, it bought another department store chain called Hertie. The famous KaDeWe store was part of Hertie.
In 1999, Karstadt merged with Quelle AG. Together, they became KarstadtQuelle AG. Then, on July 1, 2007, the company changed its name again to Arcandor AG.
In June 2009, Arcandor had to file for bankruptcy protection. This happened after the German government said no to its request for a large loan. However, on June 30, the German government did agree to give a smaller loan to Quelle.
Arcandor also owned a part of a travel company called Thomas Cook Group. This part was sold by Arcandor's banks in September 2009. In October 2009, the people in charge of Arcandor decided to close down the Quelle mail order business. They could not find anyone to buy it.
In September 2010, an American investor named Nicolas Berggruen bought the Karstadt business. He did this to save it from closing down completely.
What Arcandor Did
Arcandor was involved in several types of businesses:
- Physical Stores:
* Department stores like Karstadt, KaDeWe, Alsterhaus, and Oberpollinger. * Specialty stores such as KarstadtSport, which sold athletic equipment.
- Mail-Order Shopping:
* General mail-order services like neckermann.de (which used to be Neckermann Versand) and Quelle. * Specialty catalogs like Walz, Hess Natur, and Madeleine.
- Services:
* Travel services through companies like Bucher Reisen and Thomas Cook Group. * Financial services from KarstadtQuelle Bank. * Other services, including a customer loyalty program called HappyDigits.
Arcandor's websites were very popular in Germany. Many people visited their online stores, which were linked to their department store brands or mail-order catalogs.
About Quelle Company
Quelle AG was a company that merged with Karstadt. It was started on October 26, 1927, by Gustav Schickedanz.
Quelle During the Nazi Period
In 1932, Gustav Schickedanz joined the Nazi party. This allowed him to take over several large companies in the region. By 1939, Quelle had about two million regular customers. It made 40 million Reichsmark, which was a lot of money at the time.
Quelle's Restart After the War
After World War II, the Allies stopped Schickedanz from working. His properties were taken away, and he was sent to prison. In 1948, he was released. While he was in prison, his sister, Liesl Kießling, managed Quelle.
His wife opened the first Quelle store after the war in 1946. By 1948, Quelle's delivery business was being rebuilt. During a process to review Gustav Schickedanz's past, it was noted that a large part of his money came from businesses that had changed ownership during the Nazi era.
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See also
In Spanish: Arcandor para niños
