Booktopia Sold to digiDirect

Booktopia is back in business after being sold to digiDirect, a well-known online electronics store. The deal, managed by administrators McGrathNicol, allows the book retailer to resume trading immediately.

Booktopia, which was facing significant debts estimated at $60 million, went into administration back in July. Most of that debt was owed to publishers and customers who had gift vouchers or outstanding orders.

Keith Crawford, a partner at McGrathNicol, expressed optimism about the sale, saying, ‘Booktopia has been a key part of Australia’s publishing industry for 20 years.’ He noted that transitioning to a well-established retailer like digiDirect is great for everyone involved.

The acquisition includes popular brands like Angus & Robertson and Co-Op Bookshop, along with around $14 million worth of inventory. Shant Kradjian, the owner of digiDirect, is excited about revitalizing Booktopia and adding new systems for better efficiency.

Despite the positive turn for Booktopia, it’s important to note that the sale price won’t cover its outstanding debts, so many creditors, including some publishers and customers, might not see any returns.

Approximately 150,000 unfulfilled orders amounting to $12 million were pending at the time of Booktopia’s collapse. DigiDirect has promised special arrangements for customers holding unredeemed gift cards.

With the acquisition, more than 100 new positions will be created, and the company hopes to bring back former Booktopia employees to help it thrive again. The sale puts Booktopia in a better position to compete against online giants like Amazon.

Founded in 2004, Booktopia celebrated its 20th anniversary earlier this year but faced tough competition and setbacks leading to its downfall.