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BERLIN (AP) — German mail-order company Neckermann is set to be closed down after administrators failed to find an investor to rescue the business.
The company said on Wednesday that most of its employees will be released Oct. 1 and that many of them already have found new jobs with other firms.
Neckermann applied for bankruptcy protection from creditors in July after failing to satisfy its owner, private investment firm Sun Capital Partners, that cost-cutting plans would produce a viable business. Those plans called for chopping 1,380 of roughly 2,400 jobs in Germany.
The company said that talks with one potential investor were still ongoing but bankruptcy law meant a decision had to be taken Wednesday to wind down the business. It didn't identify the investor.