Online retailer Booktopia goes into voluntary administration as 'urgent assessment' of business announced

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Booktopia News

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The Australian online bookstore has announced it has appointed administrators to possibly restructure or sell the business after a year of losses.

Administrators are looking at selling or restructuring the main Booktopia business and its three subsidiaries.

The company's shares have not traded on the ASX since June 13 while it was attempting to secure additional funding. A transition to a new $12 million robotic warehouse in the Sydney suburb of South Strathfield that opened last year had also been plagued with difficulties and had not resulted in the cost savings the company had expected.Robbie Egan, chief executive at the Australian bookseller's association, BookPeople, said the collapse was "deeply problematic" for the industry at large.

"It's not an industry problem, it's a particular business problem," Mr Egan said, describing the business' structure and scale as a "value-destruction exercise". 'Build more houses' sure sounds great as a solution to the housing crisis, but a few key factors scream 'buyer beware'

 

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