AUSSIE RETAILER PLUNGED INTO VOLUNTARY ADMINISTRATION, MASS SACKINGS
- Booktopia has entered voluntary administration
- Company was forced to make job cuts last month
- READ MORE: Bonza airline is officially liquidated
Booktopia has been placed into voluntary administration.
The grim news for Australia's largest online bookseller comes just weeks after it announced 50 jobs needed to be cut in order to save $6million.
Chief executive David Nenke also resigned in May, having been in the role for just 12 months.
The company also made 40 people redundant in January last year.
McGrathNicol Restructuring partners Keith Crawford, Matthew Caddy and Damien Pasfield are undertaking an urgent assessment of Booktopia's business.
They will explore options for its sale or recapitalisation.
The first creditors' meeting will take place on July 15.
'The Administrators are undertaking an urgent assessment of Booktopia's business while options for its sale and/or recapitalisation are explored,' the statement released on the ASX reported.
'The shares of Booktopia Group Limited (Administrators appointed) will remain suspended from trading during the administration process. Shareholder updates will be uploaded to the ASX platform as required.'
Shares for Booktopia were last trading at 4.5 cents, having peaked at $3.
The company's chief financial officer, Fiona Levens, left in May, just weeks before Mr Nenke.
Booktopia had its headquarters in Rhodes, in Sydney's inner west, as well as a fulfillment centre in Strathfield South.
It's understood a delay in deliveries, the departure of its executives and a weak market all contributed to the company's downfall, Business News Australia reported.
Competitor Amazon along with stores like Kmart and Target also offer a range of discounted books.
At Booktopia's height, it was selling one book every four seconds.
Booktopia's sales surged during the Covid pandemic lockdowns, with people stuck at home and looking for something to do.
Its turnover in the 2020-2021 financial year was $223.9million, which then went up again to $240.8million the following year.
But its revenue fell drastically as the lockdowns ended and people cut their spending as interest rates rose, raising doubts about Booktopia's future.
This is a breaking story. More to come.
Read more 2024-07-03T01:37:07Z dg43tfdfdgfd