TIMELINE - Arcandor's path to insolvency

Tue Jun 9, 2009 5:54pm BST

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(Reuters) - German retail group Arcandor AG filed for insolvency after the Berlin government rejected its request for emergency state aid.

Here is a timeline of events leading up to the filing:

2004 - Arcandor, then called KarstadtQuelle, posts losses amid sliding demand. CEO Wolfgang Urban resigns and is replaced by Christoph Achenbach. The company starts to restructure and raises its capital by 500 million euros (435 million pounds) to avert insolvency.

2005 - Achenbach steps down and is replaced by Chairman Thomas Middelhoff, who cuts 5,000 jobs in the mail-order business, divests Neckermann and several smaller retail chains and sells real estate to pay down debt.

2008 - Weighed down by restructuring costs and declining sales at its department stores, Arcandor obtains loans from its banks. Private bank Sal. Oppenheim injects cash and becomes its largest shareholder. Middelhoff resigns as CEO, to be replaced by Karl-Gerhard Eick.

December 2008 - Arcandor reports a full-year net loss of 746 million euros.

February 2009 - Arcandor says net debt widens to 1.4 billion euros as it reports a Q1 loss of 58 million.

March 2009 - Eick pledges to focus on regaining shareholders' trust by cutting costs and improving profitability.

April 2009 - Arcandor holds talks with German government over possible state aid. It also negotiates with Sal. Oppenheim and shareholder Madeleine Schickedanz about a possible capital increase.

May 8, 2009 - Arcandor postpones publication of second-quarter results.

May 13, 2009 - Rival Metro shows interest in Arcandor's Karstadt department stores.

May 15, 2009 - Arcandor says it will ask the German government for 650 million euros in loan guarantees and a loan from state development bank.

May 21, 2009 - Arcandor says it may not survive if it fails to renew 710 million euros of loans by June 12. CEO Eick and Metro CEO Eckhard Cordes meet and agree that an alliance of their department store chains could be a sensible solution.

May 27, 2009 - Arcandor postpones publication of second-quarter results again.

June 3, 2009 - European Commission says Arcandor would not qualify for the German government's bailout program.

June 4, 2009 - The German government tells Arcandor to consider a deal with Metro instead of relying on state aid.

June 5, 2009 - Arcandor asks the government for a 437 million euro loan from KfW.

June 7, 2009 - Arcandor says it could file for insolvency on June 8 if the German government turns down its loan request.

June 8, 2009 - The German government rejects Arcandor's request for an emergency loan and gives it one last chance to improve its application.

June 9, 2009 - Arcandor files for insolvency for its Karstadt department stores, the Primondo mail-order company and its Quelle catalogue business

(Compiled by Nikola Rotscheroth and Maria Sheahan; Editing by Jon Loades-Carter)

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