Recent reports of Israel’s largest bookselling chain, Steimatzky’s, in financial trouble were fully confirmed on Wednesday by news of a sale to Arledan Investments.
Markstone Capital Partners Group LLC announced on Wednesday an agreement in principle to sell Steimatzky’s to Arledan, the owner of Keter Publishing House, Globes reported.
Sources said that Markstone will assume Steimatzky’s debt of hundreds of millions of dollars. The price tag on Steimatzky’s was not made public.
In a letter to employees, Steimatzky CEO Iris Barel said, “We have gone through hard times, waking up one morning to an unknown situation. Since then, I have worked day and night to ensure the company’s future and financial soundness, first and foremost for the sake of the employees, and of course our dedicated customers. As Steimatzky’s owner, Arledan promises to consolidate the company’s position as the country’s leading bookseller and content provider, and will continue to develop its business in the coming years.”
Arledan CEO Tzali Reshef described the acquisition as “a strategic step, following the growth and development of the company’s business. Arledan believes in Steimatzky and its employees, and will continue to develop the chain.
Steimatzky CEO Iris Barel reportedly will continue in her position.
The sale is subject to due diligence by Arledan over the next month, and obtaining the necessary permits.