Booktopia sold to DigiDirect’s owner who plans to hire more staff

Booktopia‘s administrators have completed the sale of the book retailer’s business and assets to DigiDirect’s owner Shant Kradjian.

The deal includes the Angus & Robertson and Co-Op Bookshop brands and around $14 million in inventory.

Kradjian said in a statement that DigiDirect and Booktopia will continue to operate as separate entities, however he sees “significant opportunities” to revitalise the business and introduce systems and processes, calling on his experience expanding DigiDirect over 18 years.

“There are clear opportunities for shared expertise and efficiencies that will eventually create a better experience for Booktopia and DigiDirect customers. However, that is a conversation for down the road,” he said in a statement.

Kradjian will retain all of Booktopia’s remaining employees and is seeking to recruit 100 more, with former Booktopia staff encouraged to apply.

Keith Crawford, McGrathNicol partner and administrator, commended Kradjian and his team for moving “quickly and professionally to complete due diligence and the transaction in collaboration with the administrators and Booktopia’s staff and key suppliers.”

“We extend our thanks also to key stakeholders who supported the completion of the transaction, including Booktopia staff, Moneytech and our legal advisors, Arnold Bloch Leible.”

McGrathNicol said that the transaction price is not enough to provide a return to shareholders.

The administrators have yet to call for a second meeting of Booktopia’s creditors.

Booktopia entered voluntary administration last July, following a strategic review disclosed in February after a decline in the first-half results.

Kradjian said Booktopia was a perfect fit in his portfolio, considering digiDirect’s already proven retailing model.

“DigiDirect sells a broad range of consumer goods, and expanding into new retail verticals where we can leverage that experience is something I’ve wanted to do,” he said.

“Booktopia is an iconic consumer brand and is also an imperative part of the Australian book industry – it’s Australia’s Home of Books. I’m excited about this acquisition and glad it could be kept in Australian hands.”

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