Connect with us

Hi, what are you looking for?

German DIY chain Praktiker faces insolvency/AFP


German DIY chain faces insolvency, 18,000 jobs at risk

German DIY chain Praktiker faces insolvency/AFP

German DIY chain Praktiker faces insolvency/AFP

FRANKFURT, July 11 – German home improvement store chain Praktiker said Thursday it had failed to find sufficient financing to continue operating and will now have to consider filing for insolvency, potentially putting 18,000 jobs at risk.

“Negotiations on additional, initially promising, restructuring finance failed on the evening of July 10 because certain creditor groups did not provide approval for such financing,” Praktiker said in a statement.

The financing had become necessary after the heavily indebted group failed to complete its planned sale of a stake in Luxembourg-based Batiself.

This meant that “the expected proceeds from the sale could not be realised. These proceeds had been firmly included in the financing concept from 2012,” the statement said.

“The management board will now carry out a review to determine the units for which insolvency applications will have to be filed and will then publish the results of this review as soon as possible.”

On the Frankfurt stock exchange, Praktiker shares nosedived by 69 percent to 0.11 euros.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...