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Arcandor to get bailout

ARCANDOR, the biggest shareholder in tour operator Thomas Cook, is set to receive &euro;50m (&pound;40m) of state aid, it emerged yesterday.<br /><br />The German government agreed with state ministers from Bavaria and Saxony to provide the bailout for the Quelle mail order unit of the company, which will see &euro;25m come from the federal government, and &euro;25m from the states.<br /><br />Germany had been discussing whether to back the loan to keep Quelle alive after parent company, retailer Arcandor, filed for bankruptcy. Hopes for a deal have been fading in recent days but a last minute rescue was engineered.<br /><br />&ldquo;With this agreement Quelle now has a chance for a reorganisation,&rdquo; said liquidator Klaus Hubert Goerg.<br /><br />Thomas Cook boss Manny Fontenla-Novoa has said the UK company is &ldquo;ring-fenced&rdquo; from the chaos in Germany.