Yahoo Finance Major update after Booktopia collapse
Beleaguered book seller Booktopia has been saved from collapse via a buyout from digiDirect founder Shant Kradjian.
The book chain went into voluntary administration in July.
A representative for Mr Kradjian said Kogan.com, Woolworths, Dymocks, and QBD Books were among the other entities bidding on the administrator’s tender.
Booktopia was in financial strife as it struggled to find money for warehouse upgrades and pay redundancies for about 50 staff that were made in previous cost-cutting measures.
Share trading was frozen for two weeks before the administrators came in, as Booktopia slipped into insolvency. In its initial public offering in 2020, Booktopia issued shares at $2.30 and debuted on the ASX at $2.86. By mid-2024, shares had capitulated to $0.045.
Mr Kradjian finalised the purchase of all Booktopia assets on Friday.
“The transaction will result in the retention of all remaining employees … and continuity of supply for Booktopia’s trade creditors,” administrator Keith Crawford said.
About 100 new positions are expected to be created.
“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,” he said.
Mr Kradjian founded camera store digiDirect in 2006 at the age of 19, and today it has seven physical stores, a competitive online presence and 150 employees.
Booktopia itself was founded in Sydney in 2004.
Booktopia posted record profits during the Covid-19 pandemic and in 2021 it overtook Amazon in Australian market share for the book sector.
But building a robotic warehouse in Sydney became a big budget drainer, and as funds dried up, customers were left with unfilled orders.
