Godfreys to Permanently Close

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By Published On: March 20, 20240 Comments

Godfreys has collapsed just months into its voluntary administration after an unsuccessful search to find a new buyer.

Established nearly 100 years ago in 1931, Godfreys is an Australian icon with its longstanding presence and quirky and memorable TV ads rocketing it to become one of the world’s largest vacuum retailers, operating across Australia and New Zealand.

In January this year, Godfreys fell into voluntary administration due to ongoing economic pressure and intense competition. “Lower customer demand amid cost of living pressures, higher operating costs and increased competition have all taken a toll on profitability, with some stores more impacted than others,” said administrator, PWC partner Craig Crosbie at the time.

The administrators attempted to restructure Godfreys to “preserve as much of the business and as many jobs as possible.”

As a result, 54 of its 141 stores closed their doors, with the remainder now expected to follow suit in coming weeks, with an additional 28 franchisee operated stores effected. 

In a statement released by PWC, administrators Craig Crosbie, Robert Ditrich and Daniel Walley said today they have called off the search for buyers and are closing up shop. “Despite conducting a comprehensive process to identify a purchaser for the business, no viable offers to take the business forward as a going concern have been submitted”.

Six indicative offers were received over the two month period, and 55 expressions of interest, however, “with interested parties withdrawing and no satisfactory bids to acquire Godfreys store network yet received, the administrators have no other option but to commence a progressive wind-down of Godfreys’ operations in Australia and New Zealand.”

From today, Wednesday March 20, all head office staff have been stood down with the store closures set to be phased out throughout the next two months. Franchisees “can trade until March 31 to realise the value of existing stock or alternatively return stock sold to them during the administration period to receive a credit on amounts owed to Godfreys”.

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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