Bertelsmann China has announced that the company will stop all of its businesses in China managed by Shanghai Bertelsmann Culture Industrial Co., Ltd. in China and that its stores in Shanghai will be closed by July 31, 2008.
Bertelsmann promised that although its businesses in China were being terminated, the company would fulfill its obligations to the members of the book club. From July 8, 2008, the book club will stop accepting new bookings. Before December 25, 2008, book club members can enquire about their account balance through the Internet or by phone. The money remaining in the accounts will be given back to the members tby postal remittance.
The termination of its book club management in China is a strategic adjustment by the Bertelsmann Group after evaluating its businesses in China. Not long ago, Bertelsmann stopped the bookstore chain business of its stockholder, Beijing Bertelsmann 21st Century Book Chain Co. Ltd. Now the business of Shanghai Bertelsmann Culture Industrial Co., Ltd. is also coming to an end. According to the Bertelsmann Group, the reason for terminating its businesses in China is because of the influence of the rapidly changed market, which discouraged the development of the company.
At the same time, the Bertelsmann Group said that the book club is only a small sector in the over-all business of Bertelsmann China. It will not affect the group's long-term commitment in the Chinese market. In the future, it will shift its investment focus to businesses with sustainable development and a high growth rate.