Time Warner Trade Publishing (TWTP) is to close its e-book division stating that the market "had simply not developed" as it had expected.

TWTP launched iPublish 18 months ago. It was designed to help launch newly-discovered authors as well as sell electronic titles, but it will close by the end of this year.

Chairman Laurence Kirschbaum said he still believed e-books had a future, but that iPublish was launched ahead of its time.

"Timing is everything in business, and sometimes being too early is as harmful as being too late. The market for e-books has simply not developed the way we had hoped, and given the overall economic climate, we cant jeopardise our thriving print business by carrying a money-losing operation," Kirschbaum said.

Greg Voynow, senior vice-president and general manager of iPublish, said: "Although the customers arent there yet, I believe iPublish did help define the future of publishing."

The sale of e-books, primarily electronic reprints of existing titles, will continue through the TWTP group responsible for Warner and Little, Brown titles.

Story by Lauretta Roberts