Booktopia, the Australian online bookseller, has been sold to DigiDirect, a chain of camera stores with seven locations across the country. According to a press release announcing the sale, the new ownership plans to retain existing employees and hire 100 more to run the bookseller, which has already restarted sales.
Booktopia had filed for voluntary receivership in early July. The company, which saw booming sales during the pandemic and rapidly expanded after its initial public offering in 2020, had seen sales plummet over the past few years, including a a 22% decline in sales in the last six months of 2023 amid steeper losses. At that time, both the CEO and CFO resigned and the company planned to layoff 50 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," Keith Crawford, a partner at McGrath Nichol, the firm that oversaw the sale, said.
While sale price was not disclosed, the press release indicated that the sale price "will not be sufficient to provide for a return to shareholders." The release also stated arrangements are being made to compensate customers with unredeemed gift cards and a future meeting will determine how the new owners will address creditors.
