Israeli publishing merger to result in layoffs

books  photo: Tamat Matsafi

Employees of Keter, recently acquired by Modan, will be dismissed or employed on reduced salaries.

No sooner has the sale of Keter Publishing House Ltd. (TASE: KETR) to Modan Publishing House closed than Modan is about to dismiss most of Keter's employees, "Globes" has learned.

When, earlier this year, the sale of TASE-listed Keter, controlled by A target=new href=http://www.arledan.co.il/>Arledan Investment Ltd. (TASE:ARDN), was announced, Modan claimed that its intention was to maintain two separate activities and categorically denied reports in "Globes" that most of the acquired publisher's employees would be laid off. It now appears that there was no substance to these denials.

Keter employs 30 people. Most have already been summoned by Modan for pre-dismissal hearings, among them the reference books editor and the translations editor. Others have received offers of continued employment on reduced pay.

It is believed that the layoffs at Keter will be implemented before the Jewish holiday season, in order to save the acquirer from having to pay salaries for a period in which employees are away from work much of the time.

No response was forthcoming from Modan at the time of publication.

Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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books  photo: Tamat Matsafi
books photo: Tamat Matsafi
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