A business duo with links to Australian consumer electronics retailer digiDirect have snapped up troubled online retailer Booktopia in a deal that will see all remaining employees retain their jobs plus trigger 100 more hires and continuation of trade partnerships.

Confirmed by the partners of the group's administrators McGrathNicol today, Keith Crawford and Matthew Caddy and Damien Pasfield, the successful sale of Booktopia's business and related assets (the Transaction) to Booktopia Direct (IP) Pty Ltd and Booktopia Direct Pty Ltd (Purchasers) was completed on 16 August.

The Purchasers are related to the owner of digiDirect, a leading Australian-owned omnichannel consumer electronics retailer with a well-established national store network and a significant online presence.

The Transaction enables the immediate resumption of trading for the Booktopia business, which the trio described as a vital part of Australia's publishing industry. The Purchasers have confirmed their intention to hire over 100 employees, with former Booktopia staff encouraged to rejoin the group.

More than 165 staff were made redundant within a week of Booktopia appointing voluntary administrators on 3 July, leaving a reported 18 in the business while the process of finding a new buyer has occurred.

However, the administrators said the sale price, which was not disclosed, was not enough to provide a return to shareholders. In its first creditors meeting, it was estimated creditors were owed $60m, while outstanding orders were worth $12m.

The sale was managed by McGrathNicol's Deals team, and supported by Booktopia's secured creditor, Moneytech, which provided essential funding to the Administrators to preserve the business pending the sale.

"We are incredibly pleased to have completed the sale of the Booktopia business to the owner of digiDirect. The transaction will result in the retention of all remaining employees, the recruitment of some 100 additional employees and continuity of supply for Booktopia's trade creditors. The Purchaser is also offering special arrangements to customers with unredeemed gift cards," Crawford said.

"Booktopia has been a key part of Australia's publishing industry for 20 years, and transitioning the business to such a well-known Australian retailer is a great outcome for all stakeholders.

"We commend digiDirect's owner Shant Kradjian and his team, who moved 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 Leibler."

Having completed the Transaction, the Administrators will now prepare to convene the second meeting of the creditors of Booktopia, details of which will be announced separately.

Booktopia Group and its subsidiaries entered voluntary administration on 3 July, two weeks after calling a trading halt at the ASX-listed online retailer which raised fears for its financial future. Trading of Booktopia's shares remained suspended during the administration process. A first statutory meeting of creditors took place on 15 July 2024, and dozens of expressions of interest were understood to have been received in advance of that first meeting.

In its first half to December 2023 results, Booktopia reported a 22 per cent drop in revenue to $86.3 million, with units shipped down 21 per cent to 3.1 million. It also cited a net profit after tax loss of $16.7m, down $12.8m on the prior year, along with an EBITDA loss of $4.6m.

As previously reported by Mi3, the dire 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.

At least 50 roles were also earmarked for redundancy across a number of departments in Booktopia's corporate headquarters in Rhodes, Sydney, part of a restructure expected to generate $6.1m in annualised cost savings from FY25.

Booktopia had suspended accepting new orders and trade since going into administration.