Major Aussie retailer that boomed during Covid halts share trading ahead of expected grim news about its future
A major Australian retailer has halted share trading in an announcement expected to deliver grim news about the company’s future.
Online retailer Booktopia asked the Australian Securities Exchange (ASX) on Monday to pause trading due to a ‘pending’ update to shareholders.
“The suspension is requested from the date of this letter until the commencement of trading on Friday 21 June 2024,” Booktopia’s general counsel wrote to the ASX.
“Further announcements will be made in due course,” a Booktopia spokesperson told Daily Mail Australia.
The grim news for Australia’s largest online bookseller came just two weeks after the company cut 50 jobs and lost its CEO after Booktopia laid off 40 people in January 2023.
A major Australian retailer has halted share trading in an announcement expected to deliver grim news about the company’s future. (Shoppers are pictured at Pitt Street Mall in Sydney)
The upcoming update will cover the company’s strategic review that began in February after sales fell 21 percent.
Revenue fell to $86.3 million in the second half of 2023, leading to a net loss of $16.7 million, with net liabilities of more than $20 million.
In February, the company said it had lowered its sales expectations by between $1 million and $3 million based on market conditions, citing BookScan figures that showed an 8.3 percent decline in book sales in January.
Earlier this month, Booktopia’s share price hit a low of 4.5ca, a drop of 98 percent.
CEO David Nenke resigned in June after less than a year in the role, with company co-founder and former CEO Tony Nash following his lead.
Booktopia’s chief financial officer and other senior executives have also resigned in recent months, and its chief marketing officer left last year.
Online retailer Booktopia asked the Australian Securities Exchange on Monday to pause trading due to a ‘pending’ shareholder update (stock image)
‘With this decline in sales and with the organizational restructuring about to be implemented, the company is no longer in a position to provide guidance and is withdrawing the guidance provided to the market in the announcement dated February 9, 2024,’ the company said in a statement. statement on the ASX.
Booktopia’s sales have soared during the coronavirus pandemic, with people stuck at home and looking for something to occupy their time.
Revenue in the 2020-2021 financial year was $223.9 million, rising again the following year to $240.8 million.
But revenues fell dramatically when lockdowns ended and people cut back on spending as interest rates rose, raising doubts about Booktopia’s future.