Six Egmont employees will lose their jobs at the end of the month following the closure of the US office, the company has confirmed.
The company also said it will publish its spring 2015 list and books will continue to be available via Random House, but it did not say what would happen to authors signed to Egmont USA moving forward.
Egmont announced yesterday (21st January) that it will close its office in America at the end of the month because it has failed to find a buyer for the business.
Rob McMenemy, c.e.o. of Egmont Publishing International, said: “The reason for closing the US business is that it does not fit with the strategic position of Egmont Publishing only to invest in countries where we can have a market leading position. M.d. and publisher Andrea Cascardi and her team in Egmont USA have done a great job and we were hoping to succeed with selling the business, unfortunately this has turned out not to be possible.”
Egmont had engaged Broadwater & Associates LLC, a New York-based investment banking firm, to handle the divestiture.
In 2013 the Egmont Group generated revenues of €1.6bn and operating profit of €191m. Egmont Publishing posted revenues of €660m, down from €687m in 2012.