Booktopia axes 165 jobs as administrators field interest from 60 parties
By Jessica Yun
Customers have been prevented from placing orders with Booktopia-operated websites after administrators axed 165 jobs at the embattled bookseller where dozens of interested parties are circling the carcass that remains of the business.
Only 18 employees remain at Booktopia after administrators from McGrathNicol, appointed in early July, assessed that the funds available to the business were insufficient to keep most jobs.
Inside Booktopia’s warehouse in Lidcombe, NSW in 2017.Credit: Julian Andrews
Expressions of interest in Booktopia’s assets closed on Monday, with an administrator confirming about 60 parties had thrown their hat in the ring for the entire business or parts of it, such as its automated fulfilment centres.
Rival book chain Dymocks chief executive Mark Newman previously said it “would be silly not to have a look and see if there’s anything there that might be useful to us”.
Administrators generally prioritise offers that allow the business to be sold as a going concern, but ultimately will assess what the best option is for returning the highest value to creditors.
Customers who try to buy items from websites owned by Booktopia, which also owns the Angus and Robertson website and publisherservices.com.au, will be greeted by a banner message stating “Payment gateway under maintenance, try again later” at the checkout page with no option to complete the purchase.
The 60-odd parties that have expressed interest will be asked to sign a non-disclosure agreement that provides access to information about Booktopia’s finances, and then interested parties will be asked to submit their non-binding indicative offers.
Administrators will work through those and shortlist the best offers to proceed to the next stage of the process, where parties will be asked to submit final binding offers before the end of the month.
Booktopia’s shares have been suspended for weeks after its financial issues came to a head and it tried and failed to secure emergency funding lifelines, after three years of losses, poor investment decisions in expensive new warehouses, a pullback in consumer spending, and a revolving door of executives.
Tony Nash, the co-founder of the business who was ousted after 18 years at the helm and then brought back as an executive director and sales director weeks before it collapsed, is reportedly in Greece.
Less than 10 per cent of Booktopia’s original workforce remain: the business terminated 21 of its then 204 remaining employees before administrators were appointed. The move follows cuts of at least 90 jobs in the past 18 months.
If the business is sold as a going concern, the buyer may choose to re-employ terminated staff. Employees who remain with the business are in areas such as technology, logistics and finance.
Orders placed with Booktopia before it collapsed will not be fulfilled, administrators advised customers in a letter issued on Monday. Refunds, store credits or exchanges will not be offered or processed, and store credit and gift cards have also been suspended.
Customers will have to lodge a proof of debt form to make a claim as an unsecured creditor.
“Amounts owed by Booktopia in respect of transactions or events occurring prior to July 3, 2024 remain a liability of Booktopia, and are not payable by the administrators. These debts represent an unsecured claim against Booktopia, and payment is dependent upon the outcome of the administration,” the letter states.
Customers can contact administrators at booktopiacustomers@mcgrathnicol.com and are advised to get in touch with the merchant that processed their order if they wish to seek a refund.
A creditors meeting will be held on July 15 and a creditors report will be issued before the end of the month.
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