Germany’s gross domestic product shrank at the fastest pace in half a century in the second quarter of 2020, according to preliminary data that confirm the depth of the recession in Europe’s largest economy, the Financial Times reported. GDP contracted 10.1 per cent quarter-on-quarter, the largest decline since quarterly calculations began in 1970 — and far bigger than the fall at the height of the global financial crisis, the national statistical agency said on Tuesday.

Galeria Karstadt Kaufhof, Germany’s biggest department store – alongside eight affiliated companies – filed for administrative insolvency earlier this year after announcing they would close 62 out of 172 branches and make 8,000 of the approximately 30,000 employees redundant, Lawyer Monthly reported. The management agreed on the corresponding social collective agreements with the unions Verdi and NGG shortly before the protective shield procedure – which was sought by the company early April due to the impact of Coronavirus – was completed.

Creditors of insolvent German lead producer Weser-Metall have decided to start exclusive talks about selling the plant to commodity group Glencore, the creditors said on Tuesday. Glencore said it had no comment, Reuters reported. Weser-Metall GmbH in Nordenham produces about 105,000 tonnes of lead annually and is one of Europe’s main lead producers. It filed for insolvency in May after the coronavirus crisis cut metal demand. Weser-Metall, previously part of French metals producer Recylex, stopped production over the weekend.

German payments company Wirecard has hired Alix Partners for a forensic investigation of the accounting scandal that led to its collapse, people close to the matter said, Reuters reported. The blue-chip company filed for insolvency last month, owing creditors almost $4 billion after disclosing a 1.9 billion euro ($2.17 billion) hole in its accounts that auditor EY said was the result of a sophisticated global fraud.

In the wake of the Wirecard accounting scandal, exchange operator Deutsche Boerse said on Friday it was proposing rules to enable it to quickly expel companies from the leading DAX index if those firms file for insolvency, Reuters reported. The ruling, if adopted, could mean that Wirecard would leave the DAX index in August, rather than during a regular review of the index makeup in September.

The British financial regulator’s move to temporarily close German fintech Wirecard’s UK business last month left some of the country’s most vulnerable people unable to buy food or access basic services for several days, the Financial Times reported. The Financial Conduct Authority forced Wirecard Card Solutions to halt all regulated activity after its German parent company collapsed into insolvency, before lifting the restrictions the following week.

German state prosecutors are investigating individuals at Wirecard for suspected money laundering, they said today, adding to probes into alleged fraud, balance falsification and market manipulation at the collapsed firm, Reuters reported. The implosion of what was once a $28 billion fintech giant has caused major embarrassment in Germany, with industry experts and politicians criticising the authorities for what they see as their hands-off approach and a number of missed opportunities to spot problems.

Wirecard’s administrator said today that more than 100 investors have expressed interest in buying the collapsed German payments firm’s core business and holdings, Reuters reported. The firm filed for insolvency last month owing creditors 4 billion euros ($4.5 billion) after disclosing a 1.9 billion euro hole in its accounts that its auditor EY said was the result of a sophisticated global fraud. “The aim is to find timely investor solutions in the interest of creditors, employees and customers,” administrator Michael Jaffe said in a statement after a creditors meeting.

German industrial orders rebounded moderately in May and a fifth of firms in Europe’s biggest economy said in a survey published today that they feared insolvency, adding to expectations of a slow and painful recovery from the coronavirus pandemic, Reuters reported. Germany has withstood the pandemic better than other big European countries, recording fewer COVID-19 deaths, and its economy has been relatively resilient during more than six weeks of lockdown owing to generous stimulus packages and a decision to keep open factories and construction sites.

Markus Braun built Wirecard AG from an obscure firm based in a small town outside of Munich into a global electronic-payments giant, the Wall Street Journal reported. From its perch at the crossroads of online commerce, Wirecard extracted fees for processing credit-card transactions on behalf of businesses. It pushed into emerging markets, bought up smaller firms and struck partnerships to recruit more customers. In its financial statements, sales and profits ticked steadily upward.