Insolvent German fashion group Arcandor will reportedly end domestic operations of its Quelle mail-order business.

According to a report by the BBC, 7,000 jobs will be lost after talks to sell the firm collapsed.

Arcandor insolvency administrator Görg was not available to comment on the news when contacted by just-style today (21 October).

Arcandor announced in August it had abandoned its search for a buyer for the whole business, instead breaking up its Karstadt department store and mail-order units.

It filed for insolvency in June after the German government rejected pleas for state aid.