Online book retailer Booktopia gives notice to CEO Tony Nash

Founder Tony Nash will step down from executive management, following a wide-ranging internal strategic review.

Tony Nash, founder of Booktopia.

Booktopia has given outgoing chief executive Tony Nash a stronger push out the door, changing its position from giving him a different role within the embattled online book retailer to a clean exit from the executive team of the company.

“The board of Booktopia has given Tony Nash notice to step down as CEO effective from close of business yesterday July 13, 2022,” the company said in a statement to the Australian Stock Exchange.

Booktopia shares fell on the news, to be down 4.6 per cent to 31c in midafternoon trade.

Mr Nash, who is the founder of the group, will remain as a director of Booktopia and also remains a significant shareholder.

He fell from favour with investors and the board after he sold $4.2m of shares in Booktopia in May last year, just months before the company issued a significant downgrade to earnings.

Like other online retailers, Booktopia has suffered a drop in sales since the Covid-19 lockdowns have ended.

Mr Nash has not been fined by the regulator for selling shares before the downgrade but it is nevertheless a dramatic turn for the worse for the co-founder and now former chief executive of the book company that only listed on the ASX in December 2020.

In May, the company said Mr Nash would step down and take up a new role within the company.

In a trading update at that time, Booktopia said revenue was up 9 per cent to $194.7m for the nine months to the end of March. Earnings slumped by two thirds.

Revenue for the three months to the end of March of $64.5m was down 1 per cent on the same period last year due to the disrupted start to the academic year, resulting in lower overall revenue from academic book sales, which have traditionally contributed strongly to third quarter performance, the company said.

“The board has determined that retaining Tony Nash as the chief growth officer, whilst at the same time appointing a new CEO was not in the best interests of the business going

forward.

“Accordingly, the board has given Tony notice to step away from executive management of the company,” Booktopia said in the statement.

The current chief financial officer, Geoff Stalle, has been appointed as the interim CEO while a search process takes place.

Mr Nash has a six-month notice period but will leave the position immediately. At the end of his notice period he will receive a payment of $375,000 as part of a bonus he was otherwise to receive in relation to the 2021 financial year.

Chairman Chris Beare said he “wishes Tony well for his future,” and commended him for the work he did to build Booktopia from nothing to the $240m turnover company.