Online bookseller Booktopia acquired by digiDirect
Australia's largest online bookseller Booktopia has been acquired by Shant Kradjian, owner of consumer electronics retailer digiDirect. The deal ensures all remaining Booktopia staff will keep their jobs.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Acquisition
Investors: digiDirect
Booktopia entered voluntary administration last month after a long suspension from ASX trading. The company's troubles stemmed from high costs linked to a fulfilment centre upgrade, falling sales during the transition, and challenging economic conditions.
The sale was finalised on 16 August, with Booktopia's business and assets purchased by entities affiliated with Kradjian. Founded in 2005, Kradjian's digiDirect employs 150 staff and sells a wide range of products online and through seven physical stores. The new owners plan to hire over 100 employees, including former Booktopia staff.
The deal will retain all remaining employees, create about 100 new jobs, and ensure continuity for Booktopia's trade creditors. There were also special arrangements for customers with unused gift cards.
The sale was supported by Booktopia's secured creditor, Moneytech, which provided crucial funding to keep the business running during the administration process. However, the sale price will not be enough to provide returns to shareholders.
Administrators will now arrange the second meeting of Booktopia's creditors. It remains unclear whether the deal covers redundancy payments for about 50 staff who were recently cut as part of a cost-saving measure.
The acquisition marks a new chapter for Booktopia, which has been a key player in Australia's publishing industry for two decades. The transition to a well-known Australian retailer is seen as a positive outcome for all stakeholders involved.
