Thousands of bookworms clamour for refunds as famous bookstore collapses
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The once-dominant online bookstore Booktopia recently entered voluntary administration and left a trail of unfulfilled orders and financial woes.
Founded in 2004 by Steve Traurig and brothers Simon and Tony Nash, Booktopia quickly became a household name and claimed 54.7 per cent of the market, overshadowing retail giant Amazon.
However, on 3 July, it entered voluntary administration, ceased operations, and left over 200 employees jobless.
Booktopia's collapse became a reminder of the retail industry's volatile nature, especially in the digital age, where consumer habits and market dynamics could change rapidly.
For those who placed orders before 3 July, Booktopia's new owner, digiDirect, stated they will not honour these transactions.
This announcement meant that customers would not have their books and would not be granted refunds—causing frustration and disappointment among customers.
Booktopia's financial situation is also dire, as the company owes around $60 million in debt.
About $12 million of the debt pertained to customer orders, and another $3 million of it was for gift cards.
Despite the bookstore's situation, there could be a silver lining for those affected by the collapse.
Customers with unfulfilled orders may register as unsecured creditors.
However, this could place them in a long line to recoup any funds.
Customers could also initiate a chargeback through banks or credit card issuers.
This process, governed by card companies like Visa and Mastercard, should allow customers to dispute erroneous transactions, including those with a company that recently went out of business.
The window period for requesting a chargeback could range between 45 to 120 days.
If a chargeback is denied, the Australian Financial Complaints Authority can review the claim.
Booktopia expressed its willingness to support customers who are seeking chargebacks.
In another act of goodwill, Sydney-based cook and author Nagi Maehashi—whose cookbook preorders were caught in between Booktopia's predicament—offered to refund customers out of her pocket.
For those who may be affected by Booktopia's collapse, act swiftly to get refunds.
Check transaction dates and contact your bank or credit card provider about the chargeback process.
Keep all correspondence and transaction records as they may be required to support your claim.
Booktopia's downfall is a cautionary tale for all consumers.
It underscored the importance of staying informed about the financial health of companies we patronise.
In the meantime, let us support our local bookstores and authors.
Were you affected by Booktopia's voluntary administration? Have you ever had to request a chargeback from your bank or card provider? Share your stories and insights with us in the comments section below.
Founded in 2004 by Steve Traurig and brothers Simon and Tony Nash, Booktopia quickly became a household name and claimed 54.7 per cent of the market, overshadowing retail giant Amazon.
However, on 3 July, it entered voluntary administration, ceased operations, and left over 200 employees jobless.
Booktopia's collapse became a reminder of the retail industry's volatile nature, especially in the digital age, where consumer habits and market dynamics could change rapidly.
For those who placed orders before 3 July, Booktopia's new owner, digiDirect, stated they will not honour these transactions.
This announcement meant that customers would not have their books and would not be granted refunds—causing frustration and disappointment among customers.
Booktopia's website remains operational, with an announcement regarding orders placed before 3 July. Image Credit: Booktopia
Booktopia's financial situation is also dire, as the company owes around $60 million in debt.
About $12 million of the debt pertained to customer orders, and another $3 million of it was for gift cards.
Despite the bookstore's situation, there could be a silver lining for those affected by the collapse.
Customers with unfulfilled orders may register as unsecured creditors.
However, this could place them in a long line to recoup any funds.
Customers could also initiate a chargeback through banks or credit card issuers.
This process, governed by card companies like Visa and Mastercard, should allow customers to dispute erroneous transactions, including those with a company that recently went out of business.
The window period for requesting a chargeback could range between 45 to 120 days.
If a chargeback is denied, the Australian Financial Complaints Authority can review the claim.
Booktopia expressed its willingness to support customers who are seeking chargebacks.
In another act of goodwill, Sydney-based cook and author Nagi Maehashi—whose cookbook preorders were caught in between Booktopia's predicament—offered to refund customers out of her pocket.
For those who may be affected by Booktopia's collapse, act swiftly to get refunds.
Check transaction dates and contact your bank or credit card provider about the chargeback process.
Keep all correspondence and transaction records as they may be required to support your claim.
Booktopia's downfall is a cautionary tale for all consumers.
It underscored the importance of staying informed about the financial health of companies we patronise.
In the meantime, let us support our local bookstores and authors.
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