FRANKFURT, May 14 - Debt-laden tourism and retail group Arcandor (AROG.DE) is set to ask the German government for up to 700 million euros ($948.9 million) in loan guarantees, financial sources close to the matter told Reuters on Thursday 14 May.

Arcandor is eyeing loan guarantees of between 500 million euros and 700 million euros, the sources said.

The company declined to comment. Arcandor said earlier this week its banks would apply soon for state loan guarantees.

Arcandor's supervisory board will get together for an extraordinary meeting on Sunday to discuss financing issues and the implementation of the latest restructuring programme, other sources have told Reuters.

New Arcandor Chief Executive Karl-Gerhard Eick called for a further 900 million euros in April to fund a five-year turnaround plan that will see it move downmarket and hive off loss-making businesses.

The group, which holds 53 percent in Europe's second-largest tourism company Thomas Cook (TCG.L), has credit lines of up to 710 million euros coming up for renegotiation by mid-June.

Its net debt stood at 1.4 billion euros at the end of last year.

Arcandor shares closed down 0.5 percent at 1.93 euros, while Germany's mid-cap index .MDAXI ended up 1.8 percent. (Reporting by Philipp Halstrick and Eva Kuehnen; Editing by Richard Chang)