Booktopia appoints administrators

Online bookseller Booktopia has appointed McGrathNicol as voluntary administrators of the company and its subsidiaries.

Listed as insolvent are Booktopia Group Limited and associated entities Booktopia Pty Limited, Making I. T. Better Pty Limited, and Virtual Lifestyles Pty. Limited.

McGrathNicol will undertake an ‘urgent assessment of Booktopia’s business while options for its sale and/or recapitalisation are explored’. Trading of Booktopia shares will remain suspended during the administration process.

A first meeting of creditors will be held by 15 July. More information for creditors will be uploaded to the Booktopia page of the McGrathNicol website.

On 28 June, Booktopia requested an extension to the suspension of trading of its securities, which were placed in a trading halt on 13 June, and then suspended on 17 June, pending an announcement on additional funding it was seeking from various sources to meet its redundancy costs and provide working capital.

The trading suspension came after Booktopia announced plans in June for a substantial restructure, including considering at least 50 roles for redundancy, and the resignation of CEO David Nenke. In March, Booktopia reported its revenue in the half-year to 31 December was down 21% compared to the corresponding period last financial year. Booktopia last traded at 4.5c per share, giving the company a market capitalisation of $10.3 million. Its initial public offering (IPO) of shares was issued at $2.30 per share, for a market capitalisation of $315.8 million.

Category: Local news