The biggest creditor of KarstadtQuelle, the struggling German retail group that is planning to raise €1.6bn ($2bn) through a rights issue and disposals, has expressed scepticism about the company's turnaround plans.

Werner Schmidt, chief executive of Bayerische Landesbank, the German bank, said the retailer "hasn't turned the corner yet". He is concerned the retailer may miss its sales goal, according to Handelsblatt, the leading German business newspaper.