Chain operator Könyvbazár, owned, like the Alexandra chain, by Dezsõ Matyi, said it was experiencing liquidity problems because it was unable to collect claims from another company, Rainbow.

Könyvbazár offered to pass on some of its claims against Rainbow to the publishers as a form of payment.

According to estimates, Könyvbazár cannot repay debts of Ft 4.5-5 billion.

Independent sources say large publishers Libri, Líra and Kossuth decided to recall their books from the Alexandra shops after receiving the letter.

Barring a miracle, Alexandra will not survive the withdrawal of some 3,000 titles, HVG observes.

The book publishing and retailer association MKKE met on Monday to discuss the situation.

MKKE president András Sándor Kocsis, head of publisher Kossuth, told Népszava that Alexandra cannot be kept in the book market. Könyvbazár had already been granted a two-year grace period by the MKKE, he added.

The affair will have a great effect on the book market, Kocsis underlined.

Source: Hungary Around the Clock

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