👉 Background: Booktopia is the Aussie online bookstore that was founded in 2004 and listed on the ASX in December 2020. Over the years, it has also acquired bookstore chains like Angus and Robertson and Bookworld.

👉 What happened: Booktopia is facing some tough times, announcing that it is planning to axe around 50 jobs from the business. In addition, it has withdrawn its earnings guidance. Since hitting a high of $3 in August 2021, its share price now sits around 5 cents.

👉 What else: As if it all couldn’t get worse, the company’s recently-hired CEO has also stepped down. That's after Booktopia’s founder was ousted from the company in 2022 by the board, but will now make a comeback.

What's the key learning?

💡When a founder remains CEO after their company lists on the stock exchange, they need to adapt to a different set of rules.

💡Generally, public company founders need to shift from a 'startup mindset' to focus more on shareholder value and the sustainability of the company.

💡In Booktopia’s case, their co-founder was kicked out of his position as CEO by the board after an investigation discovered he’d sold many of his shares in the company just before a really ugly earnings update. But with Booktopia back in strife, he may be the only person to turn it around.