Godfreys enters voluntary administration after almost a century

The news: Vacuum cleaner retailer Godfreys has entered voluntary administration, precipitating a likely closure of 54 stores and around 171 job losses in Australia and New Zealand.

The numbers: Three PwC partners have been appointed as administrators for Godfreys, which was founded in 1931. Godfreys employs roughly 600 workers in Australia and New Zealand across 141 stores. Another 28 stores are run by franchisees, taking the total number of stores from 169 to 115 once the restructure is implemented.

The context: PwC partner Craig Crosbie said Godfreys had struggled against lower demand amid living cost pressures, higher operating costs and tougher competition. Godfreys was founded during the Great Depression and had a brief four-year listing on the ASX from 2014.

What they said: "Our aim is to move quickly to restructure Godfreys to preserve as much of the business and as many jobs as possible," Crosbie said.