Australian online bookseller Booktopia stops trading on stock market

Molly Magennis
7NEWS
The future of Booktopia is uncertain following a tumultuous month. Stock image
The future of Booktopia is uncertain following a tumultuous month. Stock image Credit: Getty

Australian online bookseller Booktopia has ceased trading on the stock market, with the future of the popular retailer uncertain.

On Monday the company notified the Australian Securities Exchange (ASX) that it would be suspending its stock from quotation “immediately .... pending the release of an announcement”.

It said the announcement was regarding further outcomes from a “strategic review” such as its “progress in seeking additional funding”.

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June has been a big month for the company, following the appointment of a new chief executive and the news that it was looking at making 50 employees redundant.

Earlier this month, it said it was undertaking a strategic review in an attempt to support its return to “improved earnings” following a “decline” in trading performance.

Chief executive David Tenke resigned, while founder and director Tony Nash stepped into the role of executive director and sales director.

Zootopia is still on the hunt for a new chief executive.

It also announced it would be undergoing a substantial restructure, with jobs being made redundant across several departments at the company’s headquarters in Rhodes, Sydney.

This restructure would save the company $6.1 million, it said.

Booktopia acquired $1 million in funding to help pay for the redundancies.

At the time, executive chairman Peter George said a volatile economic climate and changing consumer spending habits had contributed to business results that have been “below our expectations”.

“The board remains committed to building a profitable and sustainable business in the short and long-term and as such, we have regrettably had to make the very difficult decision to make a large reduction in headcount and will commence the necessary consultation with our staff,” he said.

“We recognise we will be losing many talented staff in this process and would like to express a sincere thank you to those affected, for all the hard work and commitment they have put into the company.”

Regarding Monday’s announcement, a spokesperson from Booktopia said the company would not be providing any further comment.

“Further announcements will be made in due course,” they said.

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