Booktopia’s stock market suspension signals further trouble
Booktopia has followed up a trading halt last week with a suspension from quotation, as the online book retailer undergoes a strategic review.
The stock market suspension is “pending the release of an announcement regarding further outcomes from the previously announced strategic review including its progress in seeking additional funding”. It is expected to be lifted on Friday morning.
The bookseller embarked on its strategic review in February after reporting a 21% revenue drop for the last six months of 2023. Earlier this month, Booktopia laid off 50 staffers, CEO David Nenke stepped down from the role over only a year in the top job, and co-founder Tony Nash took over as chief.
On the restructure, executive chairman Peter George said: “The sustained volatility of the economic climate, in addition to changing consumer spending behaviours, have continued to contribute to business results that have been below our expectations.
“The Board remains committed to building a profitable and sustainable business in the short and long-term and as such, we have regrettably had to make the very difficult decision to make a large reduction in headcount and will commence the necessary consultation with our staff. This will assist in resetting the Company’s cost base to become more commercially viable and improve its prospects as it moves forward.”
“We recognise we will be losing many talented staff in this process and would like to express a sincere thank you to those affected, for all of the hard work and commitment they have put into the Company.”
Last October, Booktopia appointed Hatched as its first-ever media agency which was taked with developing targeted strategies to connect Booktopia with pop culture.
Hatched’s managing partner, Catherine Edghill, said at the time: “Booktopia is exactly the type of client we love working with. We’re excited for the opportunity to set them up for future success.”
Mumbrella has reached out to Booktopia and Hatched for further comment.
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