Wednesday, November 12, 2014

Steimatzky סטימצקי‎, the oldest and largest bookstore chain in Israel sold at a $40,000,000 loss

Steimatzky סטימצקי, is the oldest and largest bookstore chain in Israel, founded by Yechezkel Steimatzky in 1925. Currently, the chain has over 160 stores throughout Israel. It is estimated that the company holds a 40% share in the Israeli book retailing market and employs over 700 people worldwide.

Perhaps a reflection of the current issues that bookstores worldwide are facing, Steimatzky recently sold after incurring heavy losses in the last few years. The chain was purchased only several years ago by markstone capital at $55 million, it currently is estimated to have debt amassing to over $90 million. The new purchasers are Yafit Greenberg and her investment group G. Yafit.

Steimatzky has gotten itself in to a burden of troubles recently, with several of the largest publishers in Israel withholding stock from the chain after their balances went unpaid. There were accusations hurled at it's president Iris Barel of misuse of funds and extravagant salaries as well.

It remains to be seen if Steimatzky will be able to survive the times and become profitable again.

1 comment:

  1. As the case with Borders in the USA shows us, the customers are more attracted to small brick and mortar bookstores than to large chainstores. Nothing beats the feeling in independent bookstores and there are numerous independent bookstores that are thriving even in today's market. I don't think Steimatzky's closure would do any harm to the Israeli Bookmarket, perhaps it will even help more independent bookstores establish themselves. Not always is bigger, better