Booktopia saved from collapse
Online book retailer Booktopia have confirmed they have secured a buyer for the troubled business.
Just one month after it entered administration, the bookseller has been sold to online electronics store digiDirect, with owner Shant Kradijan confirming his intention to hire 100 extra staff in addition to those still remaining.
"We are incredibly pleased to have completed the sale of the Booktopia business to the owner of digiDirect," McGrathNicol Restructuring's administrator Keith Crawford said.
"The transaction will result in the retention of all remaining employees, the recruitment of some 100 additional employees and continuity of supply for Booktopia's trade creditors.
They have also encouraged former staff to rejoin the company.
When Booktopia went into administration there were around 150,000 orders that went unfulfilled, most of them were pre-ordered books that had not yet been delivered to the company.
Some customers who were owed books from the company managed to get refunds from their credit providers.
An estimated $3 million was also owed to customers with gift cards, and Kradjian has confirmed that they are offering special arrangements to customers with unredeemed gift cards.
"Booktopia has been a key part of Australia's publishing industry for 20 years, and transitioning the business to such a well-known Australian retailer is a great outcome for all stakeholders," Crawford said.
He also thanked Booktopia's secured creditor, Moneytech, which provided funding for the business during the administrative period.
According to Nine News, the sale price, which was not disclosed, will not provide return to shareholders.
Image: Booktopia