Steimatzky deal in jeopardy

Steimatzky
Steimatzky

Sources say that the bookstore chain is expected to apply for a stay of proceedings.

In the next few days, a decisive meeting is scheduled to take place between Arledan Investments (which controls Keter Publishing House) and Kravitz, the prospective buyers of the Steimatzky bookstore chain, and Markstone, which controls the chain. The deal, however, is on the point of breaking down. According to various sources in the market, it is very doubtful whether further meetings will take place between the sides.

The negotiations over the Steimatzky chain were first reported on April 23. At first, they were conducted with Arledan alone; Kravitz joined later, the agreement being that if the deal went ahead, each would own 50% of the chain.

It now seems as though the next scene in the drama will be in court. Sources inform "Globes" that Steimatzky will file an application for a stay of proceedings. It is believed that the move will come after Hebrew Book Week, which ends on June 21, since the event will provide the chain with revenue that will give it more time, but it is possible that it will happen sooner.

Steimatzky and Arledan have not yet responded to the report.

Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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