Final chapter? Online retail giant faces tough times and customer uncertainty

A prominent online retailer has recently entered voluntary administration, signalling significant financial challenges.

This development has raised concerns among customers and stakeholders about the company's future.

As the administration process unfolds, many are reflecting on the retailer's impact on the industry and eagerly awaiting updates on potential resolutions and next steps.


The Australian literary community has been hit with a shockwave as the beloved online book retailer Booktopia has entered voluntary administration.

This unexpected turn of events has left many customers, including those who have embraced the convenience of online shopping, wondering about the fate of their unfulfilled orders.


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Australian online retailer Booktopia entered voluntary administration with administrators assessing business options. Credit: Shutterstock


An ‘urgent assessment’ of Booktopia's assets has been initiated, with three administrators from McGrathNicol Restructuring appointed to lead the evaluation of Booktopia Group Limited and its three subsidiaries.

Their assessment will focus on a potential sale or restructuring. The company's shares have remained untraded on the ASX since June 13 as it sought additional funding.


The company's shares, which initially offered a promising start with an IPO price of $2.30 and a debut on the ASX at $2.86, have plummeted by more than 98 per cent, last trading at a mere $0.045.

Booktopia's financial struggles have become apparent, with a reported loss of $16.7 million for the six months leading up to December 31, a significant increase from the $3.9 million loss a year prior.

These losses have culminated in the company's decision to go into voluntary administration, a move that has raised concerns about the broader implications for the Australian book market.


The company stated that economic challenges and the ongoing weak performance of the Australian book market have negatively impacted its primary business of selling books through its websites, Booktopia.com.au and angusrobertson.com.au—both remained operational on Wednesday, July 3.

The company was established in 2004 by Tony Nash, who currently serves as the executive director, along with his brother Simon Nash and Steve Traurig.

The recent shift to a new $12 million robotic warehouse in South Strathfield, Sydney, which opened last year, faced significant challenges and did not yield the anticipated cost savings for the company.


The ripple effects of Booktopia's administration are expected to be felt across the publishing industry.

Robbie Egan, Chief Executive of the Australian bookseller's association BookPeople, expressed his concern, noting that the collapse is ‘deeply problematic’ for writers, publishers, and the entire literary ecosystem.

‘This is a hole that needs to be filled, and I feel for the writers, publishers, et cetera that will feel this,’ he remarked.

In June, the company revealed plans for 50 job cuts as part of a cost-saving initiative, alongside securing $1 million in funding from AFSG Capital. It also noted the immediate resignation of chief executive David Nenke.

‘It's not an industry problem, it's a particular business problem,’ Mr Egan pointed out, referring to the company's structure and scale as a ‘value-destruction exercise’.

‘There's no doubt, some of the bleed from online will go to Amazon,’ he added.


In the midst of restructuring efforts, customers like Natasha Wing were left in limbo.

Ms Wing, who ordered three books on June 5 and has only received one, is among the many facing frustration due to the lack of communication from Booktopia.

With orders marked as ‘on order’ and no clear indication of when or if they will be shipped, customers are calling for transparency and updates on their purchases.

‘I purchased something that was supposed to be in stock. It should be sitting in a warehouse,’ Ms Wing explained.

Booktopia's customer service department did not respond to a follow-up inquiry about the shipment date.

‘At this point we should be getting a group email to say if they are going to keep shipping orders that have been paid for,’ Ms Wing continued, expressing her preference not to rely on creditors' meetings to receive her items.


As Booktopia faces the challenges of voluntary administration, it joins a growing list of Australian retailers grappling with financial uncertainty.

This situation mirrors recent developments in the entertainment sector, where even established names like Theatre at Home are experiencing administrative dramas.

Amidst these turbulent times, customers and stakeholders alike are left uncertain about the future of their purchases and services, highlighting broader concerns about the stability of Australia's retail and entertainment industries.
Key Takeaways
  • Australian online retailer Booktopia has entered into voluntary administration, with administrators appointed to assess options for the business.
  • Customers with outstanding orders were left uncertain about the delivery of their purchases.
  • Booktopia has been operating at a loss, leading to company redundancies and the resignation of its CEO.
  • The collapse of Booktopia was consequential for the Australian book industry, affecting publishers, authors, and the wider market.
Have you been left waiting on an order? What are your thoughts on the future of book retail in Australia? We encourage you to share your experiences with Booktopia and how this situation has affected you in the comments below.
 
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I am very saddened that Booktopia is in trouble, l have been buying from Booktopia for a long time. Luckily for me l didn't have anything on order.
I just love reading and the feel of books, l truly hope someone takes over. I do feel for all the people loosing their jobs and the customers who will most likely not receive their orders or be refunded their money.
Fingers crossed 🤞 someone will rescue Booktopia.
Kind regards to all
 
Like BellaB18 I’m also a longtime customer of Booktopia and was a bit sad to hear that they have gone into administration. I buy mainly ebooks these days but love to sit & browse their website when I’m looking for books for my great niece & nephews, it’s so much easier than searching the shelves in a bookshop, usually with my head bent at an angle to read titles. Not good when you have an arthritic neck. I hope someone rescues them soon.
 
Buy a Kindle or E-book - or go to the local library. Books these days are so expensive and do not offer value for money. I have used my Kindle since I saw it first in the USA in 1990. I have only upgraded it once since then.
 
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Buy a Kindle or E-book - or go to the local library. Books these days are so expensive and do not offer value for money. I have used my Kindle since I saw it first in the USA in 1990. I have only upgraded it once since then.
I have a beautiful large screen (10.3”) Kobo which I absolutely love. I still have a lot of actual books to read but I found ebooks so convenient especially when Ted was undergoing radiation etc. He still has a few specialist appointments so I take the Kobo to fill in the time while I wait. I didn’t think I’d transition so easily but ebooks are the way to go. Kobo is also compatible with Booktopia ebooks.
 
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Everyone is posting abt the company itself. Wot about, &, if you had invested yr hard earned in buying their shares. As the article highlights, their shares down over 98% & have ceased trading. Boy-O-Boy, you'd be off on a trip to the infamous "Gap" at Watsons Bay (in Sydney for interstate readers), and do a "Swallow Dive". Oh, the joys of the share market.
 
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Like BellaB18 I’m also a longtime customer of Booktopia and was a bit sad to hear that they have gone into administration. I buy mainly ebooks these days but love to sit & browse their website when I’m looking for books for my great niece & nephews, it’s so much easier than searching the shelves in a bookshop, usually with my head bent at an angle to read titles. Not good when you have an arthritic neck. I hope someone rescues them soon.
Try Better World Books they don't charge for delivery and help charities.They are quick with deliveries and are reliable.They also sell used books at a cheaper price
 
That's such a shame. I've bought a few books over the years from Booktopia. I think the issue might be that local Council libraries have online books and magazines for members to log-in to read - which are free.
More likely people are orderingfrom the US behemoth Amazon! Shame on you!
 
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More likely people are orderingfrom the US behemoth Amazon! Shame on you!
Amazon Australia is great if people have subscriptions to Amazon Prime streaming because they get free delivery and quicker delivery compared to paying for delivery. I often buy items, but never bought books so far.
 
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I have been buying books from Booktopia for years and was quite upset when they supposedly sold the business sometime last year, I must have misunderstod at the time As I believed they had been purchased by Amazon as all books were being delivered from Australia, not the UK as before when I first became a member, I am now completely confused are they still in business or not, can books still be ordered from them or not, I am not interested in Ebooks or various types of "Kindles", I want the pleasure of opening a new book for the first time and once read from cover to cover, adding it to my vast collection worthy of a well stocked bookshop, lucky for me we do not intend moving again EVER so the entire process of moving 60 plus packing boxes full of my treasured books will never be a problem again!! Meanwhile where can I buy more from?
 
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I’m also very concerned about Booktopia as I’m a long time customer & like you Gaena have an extensive book collection. I’m running out of space to keep them all so pass a lot onto friends & street libraries. I tried to purchase an ebook last night but Booktopias payment system wasn’t working so I’m unsure what is happening. I resisted ebooks for ages until I found myself parked in an undercover car park waiting for my husband to see specialists etc without enough light to read my book. The appointment took over an hour & it was a long boring wait, so that was when I considered getting an Ereader. It’s so much easier on my arthritic hands & arms. I still love holding an actual book though.
 
I’m also very concerned about Booktopia as I’m a long time customer & like you Gaena have an extensive book collection. I’m running out of space to keep them all so pass a lot onto friends & street libraries. I tried to purchase an ebook last night but Booktopias payment system wasn’t working so I’m unsure what is happening. I resisted ebooks for ages until I found myself parked in an undercover car park waiting for my husband to see specialists etc without enough light to read my book. The appointment took over an hour & it was a long boring wait, so that was when I considered getting an Ereader. It’s so much easier on my arthritic hands & arms. I still love holding an actual book though.
You can’t beat the smell And the texture of a real book. My brother and wife are like you patti his house is wall to wall books and they’ve read every one of them and they are still getting more.
They have an extendable ladder to reach the books at the top.👍
 
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