Booktopia has been bought by DigiDirect.
No joy for publishers and customers, but 100+ previous employees will be retained and another hundred new jobs to come.
Pleased for the workers, but it seems unfair that there are no legal obligations to the previous customers and publishers, particularly as Booktopia traded on knowing full well that they wouldn't be servicing those commitments.
Would you risk buying from them again?
They have ebooks, too.
European publishers go thru consolidations too as they have failed to make digital subscriptions without forcing members to pay for paper they no longer need.
More to come: Murdoch sewage is one of the drip pricing offenders.
OK i did not expect to see that wow
Just received an promotional email. I checked my wishlist and most of the books are still unavailable.
I believe they should be obliged to honour outstanding purchase commitments.
The whole point of a bankruptcy is the company is worth less than nothing thanks to the amassed debts, so no one would buy it if they had to honour commitments. The administrators sell off the company to try pay down as much debt as possible, they accepted the best deal that got the most money. But if someone was forced to take on all debts, it simply never would have sold.
Only chance is to sue the old owners if you think they traded insolvent. But while some lawyer is likely to launch a class action, you might see pennies back if you're really lucky.
I agree!!
I believe they should be obliged to honour outstanding purchase commitments.
Hmmm… you know nothing John Snow … about company structures.
Say digi paid $1m just for the brand, operations and inventory and lease obligations, etc.
If digi had to honour the previous company's other o/s commitments, say $10m worth, then someone will have to pay them $9m to take over Booktopia.
Of course. They paid $60M, so depending how you look at it, another $12-15M isn't a huge stretch, and would generate some good will.
My post was more moral obligation and that it's almost inevitable that the consumer pays directly through lost purchases/gift cards and/or indirectly through lost tax revenue, and where applicable, government support.
However, it is understood the final sale price was nowhere near the $60 million Booktopia owed to creditors and the deal does not include the book retailer's debts being paid off.
You should refrain from commenting about corporate/accounting matters. You can't even comprehend basic info.
another $12-15M isn't a huge stretch
They most likely didn't pay anywhere near this amount. If they were stupid enough to add this this amount to their purchase price, it could sink them in quick time and cause another comment by another clueless customer owed money by (Booktopia owned by digi).
would generate some good will
They most likely will, with specials for new customers, through their own funds.
Of course. They paid $60M, so depending how you look at it, another $12-15M isn't a huge stretch, and would generate some good will.
The next time you're buying something at a store that costs $60, you might as well give them $72 to $75 instead. It's not a huge stretch, and it'll create some goodwill.
My post was more moral obligation
Not really. If you bought a second hand car that had some parking fine debts on it from the prior owner, would you feel a moral obligation to pay for those?
the bullcrap thing is that those with existing orders, will still not get their orders. My kid used a $200 voucher to buy books about 6 months ago and was told continuously that the books were coming (she did receive 2 out of the 6 books she ordered). A week before their announcement, i was told (again) that the order was due to be dispatched later that week…
We had the same rubbish, which dragged on for months.
That's rotten for you child. We often give book voucher, and it encourages them to read.
My kid specifically asked for vouchers so she could buy the books she wanted.
I'm surprised that digiDirect wants to get into the books business.
it's all about the numbers, Tax write offs, profit and loss and nothing to do with books, well the reading kind anyway
Owner apparently has his fingers in many pies.
Is Digidirect the camera store known for taking your money without stock and then you find out it's on backorder? Sounds like the same operational method as Booktopia was when going into administration
free e books from amazon for me, then there is audio books.
have never purchased from them. they were always too expensive.
Where is the I reed from a good screen option?