The combination of Amazon, an increase in paper prices, and a foolish decision to spend $12 million on a roboticized warehouse killed Australia’s largest book retailer.
Australian online book retailer Booktopia has gone into voluntary administration, leaving customers in the dark about the status of their orders. An “urgent assessment” of Booktopia’s assets has been flagged, with a possible sale or restructure the focus of three administrators from McGrathNicol Restructuring, who have been appointed to head the evaluation of Booktopia Group Limited and three subsidiaries.
The company’s shares have not traded on the ASX since June 13 while it was attempting to secure additional funding. In its initial public offering in 2020, Booktopia issued shares at $2.30 and debuted on the ASX at $2.86. The stock has since lost more than 98 per cent and last traded at $0.045.
Booktopia suffered a $16.7 million loss for the six months to December 31, compared to a $3.9 million loss a year ago. The company has said that economic headwinds and the continued soft performance of the Australian book market had diminished its core business which was selling books via two websites,
The company was founded in 2004 by current executive director Tony Nash, his brother Simon Nash, and Steve Traurig. A transition to a new $12 million robotic warehouse in the Sydney suburb of South Strathfield that opened last year had also been plagued with difficulties and had not resulted in the cost savings the company had expected.
If you’re ever frustrated with how long it takes Castalia or Arkhaven to get a book out to you, or how long Arktoons can go between episodes of a popular series, please recognize that our zero-risk philosophy is why we are still around and going strong when so many newer, more successful, and bigger publishing houses have gone under.