📬 Booktopia Sold: New Owner DigiDirect to Revive the Online Retailer

McGrathNicol, the administrators of Booktopia, have identified a buyer for the financially distressed online book retailer, which entered administration in July after accruing $60 million in significant debts.

The Details:

• Australian-owned omnichannel book retailer Booktopia has been sold to online electronics store digiDirect. The majority of the debts were actually due to publishers, with $15 million customers having orders and gift vouchers.

• The deal included the acquisition of the Angus & Robertson and Co-Op Bookshop brands as part of the acquisition by digiDirect, along with some $14 million worth of inventory.

• At the time Booktopia entered administration, some 150,000 orders worth $12 million were outstanding, mainly comprising preordered books not yet received by the company. Another $3 million was owed to customers who held gift cards.

• Booktopia fell into administration in July due to cost-of-living pressure on customers, heightened online competition, and volatility in the markets.

What next :

The administrator said the deal allowed the business to immediately resume trading, with the new buyers confirming a formal relaunch was set for late August once operational processes resumed.

The deal will let the business resume trading immediately, according to the administrator, while the new buyers have confirmed a formal relaunch is set for late August when operational processes resume.

Why it matters:

The profitable sale of Booktopia will ensure that one of the larger players in the Australian publishing market survives, with suppliers and staff inundated with stability. This sale is characteristic of the retail industry's ability to adjust to changing market conditions in a heartbeat.

Bottom line:

The Booktopia sale is evidence that the Australian publishing industry is resilient and highlights the advantage of forming strategic alliances in insecure times. Considering the history of reputable retailers in executing successful acquisitions, this acquisition assures Booktopia and all its stakeholders of continued success.