Online bookseller begins new chapter after recent acquisition—can they turn it around?
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In a remarkable turn of events that has the Australian literary community buzzing, Booktopia, the online bookseller, has been given a new lease on life.
The company, which had recently faced the grim prospect of disappearing into the annals of retail history, is set to resume trading after being acquired by Shant Kradjian, the owner of digiDirect.
Booktopia's administrator announced this news on Monday, and book lovers and industry professionals have sighed with relief.
‘We are incredibly pleased to have completed the sale of the Booktopia business to the owner of digiDirect,’ McGrathNicol partner Keith Crawford said.
Booktopia has been a cornerstone of the Australian book market for two decades.
It offers a vast selection of titles and serves as a vital platform for readers and publishers.
However, its journey hit a snag when it entered voluntary administration last month, leading to the unfortunate layoff of 165 staff members.
The sale to Kradjian, completed last Friday evening, promised a fresh start for Booktopia and brought hope to those affected employees.
‘Booktopia has been a key part of Australia’s publishing industry for 20 years, and transitioning the business to such a well-known Australian retailer is a great outcome for all stakeholders,’ Crawford added.
The company plans to rehire 100 staff and retain the 18 remaining members, so employees are being encouraged to reapply.
The acquisition by Kradjian, who founded digiDirect in 2006 at 18, is a strategic move that could spell a new chapter for Booktopia.
DigiDirect, known for its retail stores and e-commerce presence in the camera and video equipment sector, brings a wealth of experience in digital retail and a track record of success to the table.
This expertise could be just what Booktopia needs to navigate the challenging waters of the online retail market, which has seen the company suffer significant losses, including a $16.7 million hit in the six months leading up to 31 December.
Booktopia shares have been suspended from trading on the ASX since 13 June as the company seeks additional funding.
The deal also ensured continuity of supply for Booktopia's trade customers, and special arrangements are being made for customers with unredeemed gift cards.
In a significant development, Booktopia already announced its entry to voluntary administration last month, with administrators appointed earlier this year to explore options for the business.
As a result, customers with pending orders need clarification about their deliveries. For more details, click here.
Have you purchased from Booktopia before? What has your experience been, and what do you hope to see from the new ownership? Share your stories and opinions in the comments below.
The company, which had recently faced the grim prospect of disappearing into the annals of retail history, is set to resume trading after being acquired by Shant Kradjian, the owner of digiDirect.
Booktopia's administrator announced this news on Monday, and book lovers and industry professionals have sighed with relief.
‘We are incredibly pleased to have completed the sale of the Booktopia business to the owner of digiDirect,’ McGrathNicol partner Keith Crawford said.
Booktopia's sale to Shant Kradjian of digiDirect is complete. Credit: Booktopia
Booktopia has been a cornerstone of the Australian book market for two decades.
It offers a vast selection of titles and serves as a vital platform for readers and publishers.
However, its journey hit a snag when it entered voluntary administration last month, leading to the unfortunate layoff of 165 staff members.
The sale to Kradjian, completed last Friday evening, promised a fresh start for Booktopia and brought hope to those affected employees.
‘Booktopia has been a key part of Australia’s publishing industry for 20 years, and transitioning the business to such a well-known Australian retailer is a great outcome for all stakeholders,’ Crawford added.
The company plans to rehire 100 staff and retain the 18 remaining members, so employees are being encouraged to reapply.
The acquisition by Kradjian, who founded digiDirect in 2006 at 18, is a strategic move that could spell a new chapter for Booktopia.
DigiDirect, known for its retail stores and e-commerce presence in the camera and video equipment sector, brings a wealth of experience in digital retail and a track record of success to the table.
This expertise could be just what Booktopia needs to navigate the challenging waters of the online retail market, which has seen the company suffer significant losses, including a $16.7 million hit in the six months leading up to 31 December.
Booktopia shares have been suspended from trading on the ASX since 13 June as the company seeks additional funding.
The deal also ensured continuity of supply for Booktopia's trade customers, and special arrangements are being made for customers with unredeemed gift cards.
In a significant development, Booktopia already announced its entry to voluntary administration last month, with administrators appointed earlier this year to explore options for the business.
As a result, customers with pending orders need clarification about their deliveries. For more details, click here.
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