The chief executive of Booktopia said all options are on the table in a strategic review to turn around its fortunes, after the company’s auditor warned the online bookseller it may not be able to escape the deepening financial hole it finds itself in.

RSM Australia expressed doubts about the company’s ability to continue as a going concern following its $16.7 million first-half net loss. Its liabilities exceeded its assets by $39.5 million and Booktopia had just $1.6 million in cash to meet repayments on millions of dollars of debt it raised to remain viable.