From Iceland — Bookstore Gone Bankrupt

Bookstore Gone Bankrupt

Published February 18, 2011

The bookstore Mál og Menning on Laugavegur 18 will not open today, as the company has gone bankrupt.
Eyjan reports that at a staff meeting held yesterday, employees were informed that the company that owns the bookstore has gone bankrupt and would therefore not be opened today. The announcement surprised employees, who felt that business had actually been going well lately.
However, the warning signs were there. Suppliers had recently come to the store to recall many items for sale, saying that they had not yet been paid for them. The suppliers said furthermore that management and owners had not answered the phone when suppliers had tried to contact them about payment.
The owners of the bookstore have been involved in other business affairs, such as owning property at Laugavegur 4 – 6, which was sold to the city three years ago for 580 million ISK.
What severance pay or job transfers, if any, that employees will receive has not yet been announced, and it appears as though the bookstore will remain closed for the foreseeable future.

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