Australian market news: Publishers welcome survival of key online bookseller

As the Australian book trade approaches the crucial Christmas bookselling period, publishers do so with some relief that a key local channel to market has survived to sell books in Christmas 2024.

Booktopia is an Australian-owned online-only bookseller established in 2004 and publicly listed on the Australian Securities Exchange in 2020. When it entered voluntary administration earlier this year, many in the industry assumed it was the end for the local online bookseller. Booktopia had previously announced plans for a substantial restructure, including considering at least 50 roles for redundancy, and its CEO had resigned. Its half-year revenue to 31 December was down 21% compared to the corresponding period a year prior, and its market capitalisation had dropped to $10.3 million, down from a market capitalisation of $315.8 million at the time of its initial public offering.

The book trade speculated on what business might want to take over Booktopia’s brand new customer fulfilment centre—associated costs for which were widely blamed for its financial difficulties—and the head of Australia’s booksellers association (BookPeople) Robbie Egan wished the association had the wherewithal to take it on. Meanwhile, the trade pondered which other bookselling chain might want parts of the Booktopia business. But many were surprised that the business was bought by someone who intended to keep trading under the Booktopia name and saw a future for it as a bookseller. (more…)

Originally published by Books and Publishing (Read More)