The German bookseller Weltbild, which declared insolvency two months ago, has now announced its closure after a failed rescue attempt. The business will be liquidated, with competitor Thalia expressing interest in acquiring some of the remaining assets.
After two months of uncertainty, the end has arrived. This week, Weltbild announced its plan to cease operations by August 31. The company, Weltbild GmbH & Co. KG, had filed for insolvency on June 10. Insolvency administrator Christian Plail from the law firm SGP Schneider Geiwitz was initially optimistic but ultimately failed to secure an investor. The costs were too high, and the competition too fierce, according to reports.
Plail is now overseeing the liquidation of Weltbild. Clearance sales are already underway in the stores, and many products are being offered at steep discounts online. According to the insolvency administrator, only certain assets, such as brand rights and inventories, have attracted buyer interest. Thalia, a competitor, is one of the interested parties.
As indicated by the Federal Cartel Office’s list of ongoing proceedings, Thalia Bücher GmbH seeks to acquire the assets of the insolvent Weltbild GmbH & Co. KG. The Hagen-based bookseller submitted an application to the regulatory authority on August 14, expressing its intention to purchase Weltbild’s books, e-books, and e-readers product lines.
In 2012, Thalia and Weltbild, together with Bertelsmann, Hugendubel, and Deutsche Telekom, co-founded the Tolino brand—a German response to Amazon’s Kindle products. These booksellers have been selling both e-readers and digital books for the device. Thalia is likely interested in continuing the operation of the Tolino brand.
“We have signaled our willingness to acquire assets from Weltbild GmbH & Co. KG and have advanced discussions with the responsible insolvency administrator over the past weeks,” a Thalia spokesperson told the “Augsburger Allgemeine” newspaper. “For this reason, we have now submitted an application for review to the Federal Cartel Office.”
Insolvency administrator Plail declined to comment on the matter when asked by the local newspaper. The Federal Cartel Office typically reviews such merger proceedings within a month.
Three years ago, competitor Thalia had already taken over ten of Weltbild’s branches. At the time, Weltbild’s owner, Droege, sold locations in various German cities as part of an effort to advance their digital strategy amid the COVID-19 pandemic.
Current state of the German book market
The German book market has experienced a mixed performance in recent years. In 2023, the market saw a slight recovery with a 2.9% increase in turnover across central sales channels compared to 2022. However, overall sales were still 1.9% below the previous year’s figures. Physical bookstores, such as Thalia and Hugendubel, reported a 2.8% increase in turnover but faced a 2.2% decrease in sales. This indicates that while the value of sales has increased, the volume of books sold has decreased, reflecting a cautious consumer spending environment.
Competition in the German book market remains intense, with major players like Amazon continuing to dominate the online retail space. Traditional bookstores are striving to maintain their market share by enhancing customer experiences and expanding their online presence. For instance, Thalia has been investing in digital transformation and omnichannel strategies to compete with online giants. Additionally, smaller independent bookstores are focusing on niche markets and personalized services to attract loyal customers. Despite these efforts, the competition from large online retailers and the convenience they offer pose significant challenges to traditional booksellers.
Booksellers in Germany are also grappling with several difficulties, including rising costs and declining foot traffic in city centers. The ongoing economic uncertainties have made consumers more reluctant to spend, impacting sales negatively. Karin Schmidt-Friderichs, chair of the Börsenverein des Deutschen Buchhandels, highlighted the need for structural support, especially for small publishers and booksellers, to navigate these challenging times. The pressure from high energy costs, procurement issues, and production expenses further exacerbates the situation, making it crucial for the industry to seek innovative solutions and support mechanisms to sustain their operations.
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