Booktopia warned that they failed to secure additional funding to stay afloat and have gone into voluntary administration.
👉 Background: Booktopia is Australia’s largest online bookstore that was founded in 2004, and listed on the ASX in December 2020. During the peak of the pandemic, it hit a market cap of $400 million.
👉 What happened: After announcing $16.7 million in losses for the half year, Booktopia entered a share trading halt to try and sort out its failing financial situation. Now, Booktopia warned that they failed to secure additional funding to stay afloat and have gone into voluntary administration.
👉 What else: While Booktopia’s mourning its collapsed business, there are always companies eyeing a good business' leftovers.
💡A company may go under, but its pieces can still hold value. Booktopia might not be in a position to operate anymore, but its assets could still be useful to someone else.
💡For example, there are already expressions of interest from Dymocks and even Kogan.com to purchase some of Booktopia’s assets and use them to grow their own business.
💡Same thing happened when Kogan swooped in and acquired Dick Smith's assets during its voluntary administration. So, while this may be the end of the road for Booktopia, but its systems and products it built could find a new life with a new owner.
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