Booktopia’s Final Page? Online Bookseller Enters Voluntary Administration

Update Monday August 19, 2024: The ABC reports that Booktopia will resume trading. Australian company Digidirect has bought the business, which appointed administrators McGrath Nicol in July after racking up an estimated $60 million of debt. A representative for McGrath Nicol told the ABC that the sale allowed for trading at Booktopia to resume immediately. Administrators also said “special arrangements” would be made for customers for unredeemed gift cards.

Australian bookseller Booktopia has entered voluntary administration, following failed recent attempts to secure emergency funding.

The announcement comes after a prolonged period of difficulties for the online retailer, which suspended trading shares on the ASX in June. The company has also endured three years of unprofitability, has been forced to make 90 staff redundancies in the past 18 months, and has seen the resignation of several key executives, including former CEO David Nenke, who recently resigned after only a year in the job.

While Covid-19 lockdowns were catastrophic for most retailers, Booktopia turned over an impressive $223.9 million in the 2021 financial year and $240.8 million in the 2022 financial year. However, despite the revenue increase, Booktopia actually recorded losses in both of those financial years, and trade has continued to be affected by the current cost of living crisis.

McGrath Nicol partners Keith Crawford, Matthew Caddy and Damien Pasfield have been appointed as administrators. Trading on shares will remain suspended while the trio assess the business. They are exploring both a sale and recapitalisation as options.

More to come.