BERLIN (AP) — German mail-order company Neckermann says it is applying for bankruptcy protection from creditors after failing to satisfy its owner that cost-cutting plans would produce a viable business.
Neckermann said the application was being filed Wednesday at a court in Frankfurt.
The struggling company planned to cut 1,380 of its roughly 2,400 jobs in Germany in order to secure financing for the future. Earlier Wednesday, it agreed with employee and union representatives on a compromise that would have seen "limited" payoffs and other aid for laid-off employees.
But Neckermann said its owner decided the result wasn't sustainable and refused to provide further financing. It said it would examine all options to keep the business going.
Private investment firm Sun Capital Partners owns 100 percent of Neckermann.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.