Booktopia is saved from collapse: digiDirect buys one of Australia’s largest booksellers
- Booktopia was acquired by Shant Kradjian, owner of digiDirect
- Booktopia went into voluntary management at the beginning of July
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One of Australia’s largest bookstores has been rescued by a buyer, just months after the company was declared into voluntary bankruptcy.
Booktopia, an online bookstore founded in Sydney, has been acquired by Shant Kradjian, owner of online camera store digiDirect.
The sale of the company and assets was completed on Friday evening with the transfer to Kradjian.
The Booktopia website is now back online and it is expected that there are around 100 vacancies within the company.
“The transaction will result in the retention of all remaining employees … and continuity of supply for Booktopia’s trade creditors,” said Keith Crawford, administrator of McGrathNicol WA Today.
‘We commend digiDirect’s owner Shant Kradjian and his team for acting quickly and professionally to conduct the due diligence and complete the transaction, working with the administrators, Booktopia staff and key suppliers.’
However, the sale will not cover Booktopia’s debts, estimated at $60 million. A second creditors’ meeting will be held.
It is likely that only Booktopia’s creditors, such as Bans and former staff, will be paid.
The bulk of Booktopia’s debt was to publishers, but it also owed $15 million to customers for unfulfilled orders and gift cards.
Booktopia went into administration in early July after struggling to make a profit for three years.
At least 90 percent of the company’s jobs disappeared and its shares lost 98 percent of their value.
Booktopia, an online bookstore founded in Sydney, has been acquired by the owner of online camera store digiDirect, Shant Kradjian
Booktopia went into voluntary bankruptcy in early July after struggling to make a profit for three years
