German bookstore chain Weltbild will be closing down its operations on August 31. The Bookseller reported that the move affects the remaining 14 bricks-and-mortar stores and the online shop, with 440 employees being laid off.
In early June, owner WBD2C Group, a subsidiary of private equity investor Droege Group, called in insolvency administrator Christian Plail, who said he spoke with several possible buyers, but none were prepared to purchase the company because of high operating costs in a persistently tough market.
"Without fresh capital a permanent and sustainable continuation of the business is not possible," said Plail.
Still, German bookstore chain Thalia wants to buy some assets of Weltbild, according to Börsenblatt. Thalia is interested in Tolino, the booksellers' online site that sells e-books and e-readers and is competitive with Amazon's Kindle. The company confirmed it had been in discussions with bankruptcy authorities and had notified the federal monopoly authority. In 2021, Thalia bought 10 Weltbild bookstores.
Over the past 12 years, Weltbild had been one of the major players in the German market, with sales of €1.6 billion (about $1.8 billion), 6,400 employees, and 300 branches in the high street and shopping centers, selling books and a wide array of nonbook merchandise, the Bookseller noted.
Weltbild previously survived a similar situation in 2014, when the Catholic Church (the then-owner) couldn't find a buyer and filed for insolvency. Droege stepped in, undertaking a strict restructuring process.
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In another book world company collapse in Germany, BuchMarkt, the monthly "Idea Magazine for the Book Trade" founded in 1966 by the late longtime publisher Christian von Zittwitz, is ceasing publication at the end of the year, Börsenblatt reported.
Julian Müller, the head of BuchMarkt Media blamed the "stressed" print media landscape in general as well as declines in advertising and subscriptions. Von Zittwitz sold BuchMarkt in 2022 to eBuch, the bookselling cooperative. BuchMarkt has been an independent publication that focused on bookstores and booksellers.
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Australia's struggling online bookseller Booktopia, which had filed for "voluntary reorganization" in July, has a new owner, the Guardian reported. Shant Kradjian, founder of online camera store digiDirect, purchased the company, according to administrator McGrathNicol.
"The transaction will result in the retention of all remaining employees, the recruitment of some 100 additional employees and continuity of supply for Booktopia's trade creditors," McGrathNicol partner Keith Crawford said, adding: "Booktopia has been a key part of Australia's publishing industry for 20 years, and transitioning the business to such a well-known Australian retailer is a great outcome for all stakeholders."
New owner Kradjian told the Sydney Morning Herald he wants to preserve the Australian-owned identity of the online bookseller, which will delist from the local stock exchange, adding that he had admired Booktopia for years and that the two e-commerce businesses shared many qualities: "As it [Booktopia] was declining, I kept a closer eye on it. As soon as it went into administration, I reached out [and thought] there could be something there."
He also noted that he had met with book publishers and authors, who said it was important that Booktopia remain in local hands: "The brand has got a lot of good value. That was a big thing for publishers, authors, being Australian and not giving the business to Amazon. I'm taking on the CEO role. I've got my sleeves rolled up. This is not a side investment for me. I'm playing an active role in this."
Regarding the 100 jobs being added to the recently collapsed company, Kradjian said former employees are encouraged to return. Senior management and the board of directors of the former entity will not be part of the new business.
Booktopia's website is expected to begin trading soon, with an official launch campaign to follow. "We want our warehouse full, we're placing orders with suppliers as we speak. We'll stock up inventory," said Kradjian. "We bought this unencumbered, we have no debt into the business... it's kind of a clean slate and gives us a bit of an advantage."
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WH Smith has launched Smith's Kitchen, a new store format selling food and beverages, from its U.K. Travel division. The first Smith's Kitchen opened August 15 in Princess Anne Hospital, Southampton, England, with a 26-seat, 495-square-foot café.
The café menu has been designed for hospital customers, NHS staff, patients and visitors, and features coffee sourced from a local roastery and hot breakfast choices, including patisserie freshly baked in-store. WH Smith also recently introduced the Smith's Family Kitchen food range, with more than 30 products, from sandwiches to salads to baguettes and wraps.
U.K. Travel is the largest division in WH Smith, operating 590 stores across the U.K. in airports, hospitals and railway stations. --Robert Gray