Hachette New Zealand to cease new publishing

Hachette has restructured its New Zealand business, closing its publishing unit and relocating the finance, administration and IT functions to Australia, with the loss of 15 jobs overall.

The 2013 programme will be completed, but there will be no more new publishing thereafter.

Managing director Kevin Chapman, editorial director Warren Adler and financial controller Rick Groufsky are to leave the company, with a further 12 jobs also going.

Malcolm Edwards, chairman of Hachette Australia and New Zealand, said in a statement: "Hachette New Zealand will become solely focused on the marketing, promotion and sales of our international titles and the New Zealand backlist. Mel Winder, as sales and marketing director, will lead the company, reporting to Matt Richell, c.e.o. of Hachette Australia, with immediate effect."

He added: "These changes have been caused by the diminution of our business in New Zealand, caused largely by the increased sourcing of books from overseas, at the expense of the local trade, and the rapid growth of e-books."

Richard Kitson, commercial director at Hachette UK, said in a note to staff that "the New Zealand government's abandonment of territorial copyright protection" and "a significant shift to sales from offshore online retailers who are not liable for the sales tax that is levied on local retailers" were among factors behind the decision.

Edwards said: "Kevin, Warren and Rick have made an enormous contribution to the company over many years, which will be marked in the appropriate way, at a later stage. I am grateful of them for agreeing to stay until the restructuring is completed to ensure that it goes seamlessly."