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FACTBOX-Arcandor set to ditch loss-making units

Published 04/20/2009, 11:39 AM
Updated 04/20/2009, 11:48 AM

April 20 (Reuters) - Arcandor is to transfer the loss-making operations of its department store unit Karstadt and mail-order division Primondo into a separate unit to stop the German retail and tourism group's cash drain.

Here is a list of Arcandor's businesses and their performances:

* Primondo's profitable core business includes the e-commerce and Quelle's catalogue operations in Germany, Austria, Switzerland, central as well as eastern Europe, Russia and Ukraine, the home shopping channel HSE24 and other special mail order providers.

It generated earnings before interest, tax, depreciation and amortisation (EBITDA) of about 65 million euros ($84 million) in 2007-08 on sales of 3.9 billion. It employs about 12,700 staff.

* Primondo's non-core business includes Quelle's over-the-counter retail operations which offer consumer and household electronics, posting a core loss of 73 million euros on sales of 500 million.

* Karstadt made a core profit of 25 million euros on sales of 3.5 billion, with 81 Karstadt standard stores and 27 Karstadt Sports branches. It employs 26,400 staff.

* Eight standard Karstadt department stores, a Karstadt Sports branch and three premium stores in Berlin, Hamburg and Munich will become non-core assets. They lost 136 million euros on sales of 600 million in 2007-08.

(Reporting by Nikola Rotscheroth; Editing by Dan Lalor) ($1 = 0.7706 euro)

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