The Bookseller.com

13th October 2008

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Plug pulled on German indie

04.06.08 Anja Sieg

Berlin-based Aufbau-Verlagsgruppe, the most prominent and successful former East German publisher with annual sales of €14.2m, has started insolvency procedures. Its owner Bernd F Lunkewitz has unexpectedly pulled the plug, citing heavy debts of close to €50m.

His decision has caused angry reactions from the management that had been in discussions with Lunkewitz about reorganising Aufbau. Both joint managing directors Tom Erben and Rene Strien were expecting to meet Lunkewitz in Berlin last week to discuss a further cash injection; instead they received a letter informing them of his decision. They have accused Lunkewitz of betraying the publishing house, its authors and staff.

Lunkewitz bought the company in 1991 believing that it owned the rights to a revered list of authors, among them Lion Feuchtwanger, Victor Klemperer, Anna Seghers, Alfred Kerr and Christa Wolf. In 1995 he bought the correct rights-owner Aufbau-Verlag, and sued Treuhand, the state-owned organisation that sold him both companies, and which had been overseeing the privatisation of former East German companies, for compensation. In March he won the court case but the government has so far rejected his call for compensation.

Confusions reigns as to Lunkewitz's future plans for Aufbau-Verlag. While he has hinted that he may well continue publishing, no decision has been taken yet. In the meantime, the two managing directors of Aufbau-Verlagsgruppe are working with the appointed administrator, Joachim Voigt-Salus, on a contingency plan to keep the publisher going. Voigt-Salus is expecting to meet Lunkewitz soon.

International Anja Sieg Germany Aufbau-Verlagsgruppe Aufbau-Verlag