Major retailer Booktopia sacks another 165 workers leaving only a skeleton staff as it stops taking new orders
A major Australian online retailer that thrived during Covid-19 lockdowns has laid off another 165 staff and is no longer accepting new orders.
Booktopia entered voluntary bankruptcy last week, just weeks after the company announced it would cut 50 jobs to save $6 million.
In June, the company suspended trading in shares before notifying 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 nation’s largest bookseller has suffered huge losses since brick-and-mortar stores reopened at the end of the pandemic, including a $16.7 million loss for the six months ended Dec. 31.
CEO David Nenke stepped down in June after less than a year on the job, replaced by co-founder and former CEO Tony Nash.
Booktopia’s CFO and other executives have also stepped down in recent months, and last year the marketing director also left.
Keith Crawford, Matthew Caddy and Damien Pasfield of administrators McGrathNicol have reportedly laid off all but 18 employees at the company as it winds down its operations.
Major Australian online retailer Booktopia, which thrived during Covid-19 lockdowns, has laid off another 165 staff and stopped taking new orders. A mailroom is pictured
The decision to do this was made within a week of the administrators taking over, who indicated that they saw no chance of the company getting out of its troubles through trading.
When you try to place an order, the error message ‘Payment gateway under maintenance, please try again later’ appears.
“Our first priority is to conduct a review of Booktopia’s assets and work with employees, suppliers and customers to achieve the best outcome for all parties,” Mr Crawford said.
The administrators have received 60 expressions of interest in their request to sell or restructure the company.
Booktopia (the company’s logo in the photo) went into voluntary bankruptcy protection last week, just weeks after the company announced it would cut 50 jobs to save $6 million.
Booktopia sales soared during the pandemic lockdowns, as people were stuck at home and looking for something to fill their time (stock image)
Booktopia’s sales skyrocketed during the pandemic lockdowns, as customers were unable to visit physical stores and people stuck at home looked for something to occupy their time.
Revenue in the 2020-2021 fiscal year was $223.9 million, rising again to $240.8 million the following year.
But revenues plummeted as lockdowns were lifted and people cut back on spending due to rising living costs, raising doubts about the future of the business.
A meeting of Booktopia’s creditors is scheduled for Monday, July 15.