No twist ending for Booktopia as it enters voluntary administration
Online book retailer Booktopia has appointed voluntary administrators after it failed to secure enough funding to avoid collapse.
The Australian online business has appointed Keith Crawford, Matthew Caddy and Damien Pasfield from McGrathNicol to oversee a sale, or the selling of parts.
“The Administrators are undertaking an urgent assessment of Booktopia’s business while options for its sale and/or recapitalisation are explored,” an ASX statement reads.
“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.”
Last month, Booktopia entered a sudden trading halt with a suspension from quotation, followed by a stock market suspension, “pending the release of an announcement regarding further outcomes from the previously announced strategic review including its progress in seeking additional funding”.
The bookseller embarked on the aforementioned 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 after 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 tasked 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.”
Subscribe to the daily newsletter
Linkedin
Have your say