Booktopia buyer found

Australian retailer digiDirect has taken over ownership of Booktopia Group following the latter's entry into voluntary administration.

DigiDirect, which sells consumer electronics both online and in stores, completed the purchase on August 16, allowing Booktopia to resume trading.

The company said it is encouraging Booktopia’s staff to rejoin the company and is also seeking 100 new staff members.

The sale [pdf] was handled by McGrathNicol Partners, who said the price was insufficient to provide for a return to shareholders.

A second meeting of creditors is expected to be announced in the near future.

Booktopia went into administration in June, partially due to significant costs related to the creation of a $12 million robot-enabled warehouse facility.

The Australian e-tailer began building a new highly automated customer fulfilment centre (CFC) in Sydney last year in a bid to support future expansion.

However, due to the CFC’s operational disruption and costs, ASX-listed Booktopia’s most recent half-year revenue and profit took a dive.