Godfreys to shut almost 170 stores

Vacuum cleaner retailer Godfreys will shut its 13 stores in Western Australia among the mass of closures after no suitable buyers prevailed to save the troubled business.

Administrators from PwC advised that all of Godfreys’ 141 company-owned stores and 28 franchises across Australia and New Zealand will be shuttered over the next eight weeks. 

About 600 staff members will be out of a job by May 31, including 25 head office staff who were made redundant today, according to administrators.

Godfreys operates 13 stores across Western Australia, its unclear how many staff have been impacted across the state.

It comes after Godfrey’s voluntarily appointed administrator to its Australian and New Zealand entities in late January, citing challenging economic and operating environment coupled with lower customer demand. 

The Godfreys-owned stores and franchises will continue to trade for a “reasonable period” to clear out stock ahead of the loooming May 31 permanent closure date. 

PwC Australia Partner Craig Crosbie said that 55 expressions of interest and six indicative offers were received during the sale process.

But he said these were either  withdrawn or not sufficient in securing the business’ longer-term future.

“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,” Mr Crosbie said.

“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.”

When the vacuum cleaner retailer appointed administrators two months ago, it attributed its profitability troubles to a challenging economic and operating environment, lower customer demand amid cost of living pressures, higher operating costs and increased competition.

Administrators at the time said their aim was to move as quickly as possible to restructure Godfreys to preserve the business and jobs.