Booktopia's creditors are owed $60 million, while outstanding orders are worth $12m, according to figures emerging from the first creditors meeting held by voluntary administrator, McGrathNicol

Dozens of expressions of interest had reportedly been received in advance of the first creditor's meeting into Booktopia on 15 July as McGrathNicol looks to urgently find a way forward for the diminished ASX-listed online retailer.

More than 165 staff were made redundant last week following voluntary administrators being appointed to Booktopia on 3 July. Mi3 understands just 18 employees are left. The staff cuts came on top of more than 50 people being made redundant at Booktopia in the last six months. The drastic cuts came on the back of a $16.7 million loss recorded in the six months to 31 December 2023. Overall, Booktopia reported a 21.1 per cent drop in revenue to $86.3 million over H1 FY24, with units shipped down 21 per cent to 3.1 million.

In addition, the business has suspended accepting new orders and trade, with its checkout simply stating: 'Payment gateway under maintenance, try again later'. Refunds are not being processed, and a circular to customers dated 8 July said any unfulfilled orders make up part of the unsecured creditors' debt.

At the initial creditors' meeting on 15 July, creditor debts totalling $60 million were flagged, along with $12m in unfulfilled customer orders, representing about 150,000 orders. Proceedings were otherwise largely procedural in nature and included both confirmation and continuation of McGrathNicol's appointment, as well as whether to appoint a committee of inspection (COI) - a small group of creditors to assist the administrators. In its circular in advance of the meeting,

McGrathNicol had recommended a COI be appointed due to costs. A second creditors' meeting is usually held about six weeks after the first but has not yet been confirmed. Keith Crawford, Matthew Caddy, and Damien Pasfield from McGrathNicol Restructuring were appointed as administrators on 3 July 2024 and tasked with assessing Booktopia's business and exploring options for its sale and/or recapitalisation.

Trading of Booktopia Group Limited's shares will remain suspended during the administration process. The dire financial results led Booktopia Group in February to kickstart a strategic review to tackle declining trade performance and funding requirements.

The news came with the resignation of CEO, David Nenke, who had only joined in May previous year, plus CFO, Fiona Levens. Chairman, Peter George, stepped in as interim executive chairman and took on full operational responsibilities for the six months Nenke serves out his notice period. Director, Tony Nash, also assumed an executive director role. In its most recent half-yearly report, Booktopia reported total current liabilities of $58m, along with no-current liabilities of $44m, bringing its total liabilities to more than $102 million. Total net assets were in the red by more than $20m.

* With additional reporting by Nadia Cameron