Australian online retailer Booktopia has entered voluntary administration, following a voluntary suspension of share trading that occurred two weeks prior.
Keith Crawford, Matthew Caddy, and Damien Pasfield, partners of restructuring and insolvency company McGrathNicol Restructuring, have been appointed as the voluntary administrators to oversee the process.
Go deeper with GlobalData
The administrators are exploring options for the business, including sale and recapitalisation.
A spokesperson for McGrathNicol confirmed that Booktopia’s online retail activities would continue as usual for the time being.
The company also assured that it will maintain its operations, continuing to fill orders and sell to the public, under supervision from an insolvency adviser.
McGrathNicol Restructuring partner Keith Crawford was quoted by The Guardian as saying: “We are urgently engaging with key stakeholders to maximise the prospect of successfully completing a sale or recapitalisation of Booktopia.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Our immediate focus is to undertake an assessment of Booktopia’s assets and work alongside employees, suppliers, and customers to secure the best outcome for all parties.”
Amid financial challenges, Booktopia announced the termination of 50 jobs and the resignation of CEO David Neinke last month.
The company’s chairman Peter George noted at the time that these redundancies were projected to save around $6.1m by next year.
The company, which went public on the ASX in 2020, had previously reduced its workforce by about 40 positions last year.
Booktopia reported a significant 21% drop in revenue in the second half of last year, compared to the same period in the previous year.
The retailer recorded a $16.7m net loss and more than $20m in net liabilities for the period between July and December.
The first meeting with creditors is scheduled for 15 July.
