BERLIN — Troubled Arcandor AG, the parent company of the Karstadt department store chain, on Monday unveiled an emergency share sale in a move to avoid having to sell some of its assets.
The capital increase will allow the company to retain its 52 percent stake in British travel business Thomas Cook Group.
Analysts welcomed the news, saying that holding on to Thomas Cook, Arcandor’s only profitable unit, is positive in the long run. Shedding Thomas Cook would have halved Arcandor’s turnover.
However, after a slight rally on Monday morning, when the capital hike was revealed, the stock price remained low. After opening on Monday morning at 2.05 euros, or $2.94, it fell sharply to end the day at 1.87 euros, or $2.67. On Friday the stock price had reached an all-time low of 1.58 euros, or $2.27, compared with a 52-week high of 24.19 euros, or $34.69. All dollar figures are converted from the euro at current exchange rates.
The decision was made by Arcandor’s supervisory board at the weekend, after its stock fell 46 percent at the end of last week. The group has been under increasing pressure because of the poor performance of its Karstadt division, which operates 90 department stores and 28 sporting goods stores. Rising costs and low consumer spending in Germany led to a drop in the group’s third-quarter earnings, pushing Arcandor to lower its forecast for 2008-09.
Over the last year, Arcandor’s shares have lost more than 90 percent of their value as a result of increasing uncertainty about the group’s future. So far, no announcement has been made about a potential change of ownership of Karstadt, and negotiations on possible international partnerships have yet to bear fruit.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye