After entering voluntary administration in 2024, Booktopia was rescued from the brink of collapse. Late last year, the company announced it had been sold to electronics retailer digiDirect. Now the site is up and running again, and books are available for purchase.
digiDirect was founded in Australia by Shant Kradjian in 2006 and has eight retail stores nationwide. It focuses on speciality camera equipment. Kradjian faces a tough road ahead in revitalising the book business, which has suffered massive losses in recent years. In speaking with ArtsHub, many other Australian book retailers said Booktopia’s previous reputation among customers and the industry was abysmal.
Five months after buying the business, Kradjian appears dedicated to revitalising the online store. “The brand has got a lot of good value. That was a big thing for publishers and authors, being Australian and not giving the business to Amazon,” he told The Sydney Morning Herald. “I’m taking on the CEO role. I’ve got my sleeves rolled up. This is not a side investment for me. I’m playing an active role in this.”
One of the largest points of contention in Booktopia’s initial collapse was the purchase of a large-scale robotic warehouse. Kradjian sees the expensive investment as an asset for his business. The warehouse will now also be used for digiDirect’s stock.
“I always wanted the whole business, but it needed to be cleaned,” he told The Sydney Morning Herald. “The fat was the extra leases, the debts, the headcount. It was doing a similar turnover to my business with twice as many staff.
“If we ran it the same way we ran digi – tighter, leaner, with the revenues and margins that Booktopia has – it could actually do very well, profitability-wise.”
While all pre-existing management and senior roles have been eliminated, Kradjian invited many of the initial Booktopia staff back to the company.
The news that another successful Australian online retailer has purchased the company has been welcome news for the Australian book industry, which is interested in Booktopia’s fate.
