The world view finally turns out
In June, Weltbild files for insolvency. However, despite the necessary investments and high costs, no investor can be found for the bookseller. All 14 remaining branches must close promptly, and 440 employees lose their jobs.
The insolvent online bookseller Weltbild will finally cease operations at the end of August. The provisional insolvency administrator, Christian Plail, announced that the 14 branches of the company were still conducting clearance sales and would then close. Online purchases would still be delivered until the end of the month. The 440 employees are expected to receive their dismissals in September.
The company had filed for insolvency at the Augsburg District Court in June. Plail said: "A sustainable and long-term continuation of operations is not possible without fresh capital due to the ongoing loss situation." The IT and marketing costs and the time required are too high to continue the company profitably.
Investors were not willing to take over the operations, even in a limited scope, given the necessary investments and costs in an already competitive market. However, there is interest in the brand rights and inventory. These discussions will continue.
Subsidiaries also file for insolvency
The business activity will continue after the applications. Today's Weltbild business originated from the namesake former company of the Catholic Church. Ten years ago, the former publishing group Weltbild also filed for insolvency, and eventually, the Düsseldorf-based family company Droege took over the Augsburg-based company and built the current corporate structure.
Just one month after the online bookseller Weltbild filed for insolvency, other companies from the corporate group also filed a corresponding application. According to the Insolvency Announcements portal, these include the bookstores Jokers and Buecher.de, the backpack provider Fitz & Huxley, and the children's items retailer Tausendkind. There is no information on a decision about what will happen to these subsidiaries.
The closure of Weltbild's branches and job losses within the company are expected to have a significant impact on the local economy. Despite the interest in the brand rights and inventory, it remains uncertain whether the subsidiaries, such as Jokers and Buecher.de, will be able to navigate their own financial challenges and continue operations.
