A major Australian online retailer that thrived during Covid-19 lockdowns has laid off another 165 employees and stopped accepting new orders.
Booktopia filed for voluntary administration last week, just weeks after announcing it needed to cut 50 jobs to save $6 million.
In June, the company suspended trading in its shares before issuing an update to shareholders and the Australian Securities Exchange.
“Further announcements will be made in due course,” a Booktopia spokesperson told Daily Mail Australia at the time.
The country’s largest bookstore had been losing huge amounts of money since physical stores reopened at the end of the pandemic, including a $16.7 million loss during the six months to Dec. 31.
Chief Executive David Nenke stepped down in June after less than a year on the job and was replaced by company co-founder and former CEO Tony Nash.
Booktopia’s chief financial officer and other top executives have also resigned in recent months, and its chief marketing officer left last year.
McGrathNicol’s Keith Crawford, Matthew Caddy and Damien Pasfield have reportedly made all but 18 people redundant as the company winds down its operations.
Booktopia, the leading Australian online retailer that thrived during COVID-19 lockdowns, has laid off another 165 staff and stopped accepting new orders. Pictured is a mailroom
The decision to do so came a week after administrators took over, saying they saw no chance of the company negotiating its way out of trouble.
When I try to place an order, I get an error message that says “Payment gateway under maintenance. Please try again later.”
“Our immediate goal is to conduct an assessment of Booktopia’s assets and work with employees, vendors and customers to ensure the best outcome for all parties,” Crawford said.
The administrators have received 60 expressions of interest in their quest to sell or restructure the business.
Booktopia (pictured, company logo) filed for voluntary administration last week, just weeks after announcing it needed to cut 50 jobs to save $6m.
Booktopia sales surged during pandemic lockdowns, with people stuck at home and looking for something to occupy their time (file image)
Booktopia’s sales surged during pandemic lockdowns as customers were unable to visit physical stores and people stuck at home looked for something to occupy their time.
Its turnover in the 2020-2021 financial year was $223.9 million, rising again to $240.8 million the following year.
But its revenue fell sharply as lockdowns ended and people cut back on spending as the cost-of-living crisis intensified, raising questions about the company’s future.
A meeting of Booktopia’s creditors is scheduled for Monday, July 15.
