Godfreys to close all stores after no viable buyers
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The news: Vacuum cleaner retailer Godfreys will shutter all its stores after its administrator PwC was unable to find any “viable offers to take the business forward”.
The numbers: PwC said the phased closure of all stores would start from today until the end of May. The outcome meant 25 head office staff were made redundant today.
Administrator and PwC Australia partner Craig Crosbie noted there had been 55 expressions of interest and six indicative offers received during the sale process. However, these were either withdrawn or deemed insufficient in securing the longer-term future of the business.
Franchised stores would be allowed to trade until 31 March to realise the value of existing stock or to return stock sold to them during the administration period.
The context: Earlier this year, Godfreys announced it had entered voluntary administration, precipitating a likely closure of 54 stores and around 171 job losses in Australia and New Zealand.
The announcement noted that Godfreys stores would continue to trade on an interim basis to clear existing stock.
Godfreys was founded during the Great Depression and had a brief four-year listing on the ASX from 2014.
What they said: Crosbie said: “This is not the outcome Godfreys had hoped for following a rigorous process to find a purchaser for the business that could keep the store network trading. In the absence of any further bidders coming forward as intermittent trading continues, the process of closing all remaining stores will progress over the next eight weeks.
“We recognise this is a difficult time for staff, franchisees, and other stakeholders, and we will continue to work closely with all parties to ensure they are informed and supported over the coming weeks.”
The source: PwC
