It used to be that video killed the radio star. Now another culprit is decimating an industry that used to be so secure in Australia its gradual demise is taking everyone by surprise, save of course for those who long abandoned the traditional bookshops in favour of online bookstores and publications.

Plunging sales, mounting debts, online competition and electronic subscriptions brought down giant bookstore chains Angus & Robertson and Border to their knees, with hundreds of their outlets in danger of closing down soon and thousands of jobs poised to be lost in the process.

The bookstores' parent company, REDgroup Retail, has been placed in voluntary administration and industry experts are predicting that soon enough small players would succumb to the ongoing onslaught unleashed by their online competitors.

An ABC report published on Friday said that in New South Wales alone, at least six bookshop owners are bent on closing down their stores over the next few weeks.

In Sydney, the once mighty Zabriskie Booksellers will soon disappear from the face of the city after serving as a popular landmark for close to two decades and its owner could only blame the internet for eradicating her business.

Members of the Australian Booksellers Association have admitted that book trades facilitated through Amazon from the United States and Book Depository from the UK forced them in their current state, plus the fact that the rising value of the Australian currency further enhanced the buying power of local consumers when they seek out books sold from abroad.

The rush of Australians turning to the internet for their reading pleasures was partially confirmed by PayPal when it declared that online purchases from the country spiked by 76 percent in 2010.

Apart from their online nemesis, the book trading industry also complained that big discount outlets such as Target and Kmart are greatly contributing to their retreating sales since book titles found on their shelves are sold much lower than in traditional shops as their stocks were acquired in bulk, which afforded them the leeway to slash retail tags.

Meanwhile, REDgroup appears to be on its way out and the company revealed that some 160 stores in Australia, New Zealand and Singapore will be closed down while a total of 2500 workers will surely be affected by the unfortunate move, which will be executed following the loss of $43 million and separation of senior staff last year.