One of ‘s biggest book retailers has been rescued by a buyer after it entered voluntary administration last month.
Booktopia, an online bookseller founded in Sydney, was purchased by online camera store digiDirect owner, Shant Kradjian.
The sale of the business and its assets were finalised with the transfer to Kradjian on Friday evening.
Booktopia’s website has since resumed trading and it’s expected some 100 positions will be available within the company.
‘The transaction will result in the retention of all remaining employees… and continuity of supply for Booktopia’s trade creditors,’ McGrathNicol administrator Keith Crawford told WA Today.
‘We commend digiDirect’s owner Shant Kradjian and his team, who moved quickly and professionally to complete due diligence and the transaction in collaboration with the Administrators and Booktopia’s staff and key suppliers.’
However, the sale does not fully cover Booktopia’s debts, totalling an estimated $60million. A second creditors’ meeting will be arranged.
It’s likely only Booktopia’s secured creditors – such as banks and former staff – will receive payment.
Most of Booktopia’s debt was owed to publishers but an incredible $15million was owed to customers with unfulfilled orders and gift vouchers.
Booktopia entered voluntary administration in early July after struggling to return a profit for three years.
At least 90 per cent of jobs were made redundant and its shares lost 98 per cent of their value.
Booktopia had its headquarters in Rhodes, in Sydney’s inner west, as well as a fulfillment centre in Strathfield South.
Its 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.