EU approves aid for German mail order firm Quelle

1st July 2009, Comments 0 comments

Quelle followed its parent company Arcandor into insolvency earlier this month after Berlin gave the thumbs down to the retail and tourism group's appeal for emergency aid.

Brussels -- The European Commission said on Tuesday it had approved 50 million euros (70 million dollars) in German state aid to prop up insolvent mail-order company Quelle.

The fate of the Bavaria-based company, which employs 8,000 workers in central and eastern Europe, is hanging in the balance, depending on whether the government decides to grant the group emergency loans.

The commission said that if the aid is extended to the company, it would meet EU rules on state support for struggling firms because it would not distort competition.

Quelle followed its parent company Arcandor into insolvency earlier this month after Berlin gave the thumbs down to the retail and tourism group's appeal for emergency aid, putting 43,000 jobs at risk.

AFP/Expatica

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