Barbeques Galore has entered administration, putting 500 jobs at risk.
The news comes just two months after the company’s sale to a US-based private equity firm, but receivers have assured customers that outlets will continue to operate in the interim.
Barbeques Galore is Australia’s largest outdoor furniture retailer, with 68 company-owned and 27 franchise stores nationwide. Gordon Brothers acquired the business from Quadrant, another private equity firm which first bought a stake in the company in 2012.
The retailer said it has appointed Philip Campbell-Wilson, Lisa Gibb and Matthew Byrnes of Grant Thornton as voluntary administrators.
Quentin Olde, Luke Pittorino and Liam Healey of Ankura have also been appointed as receivers and managers by the secured creditor. They have taken control of the business and its operations and will seek to restructure or sell the business.
CEO David White, who was appointed in December by Gordon Brothers, said the business faces a “necessary restructuring”.
“Management was excited to turnaround the business and move to the next evolution of the brand,” he added. “Considerable progress has been made in recent months leading to significant improvements across the business and operations, however ongoing liquidity challenges have led to the necessary restructuring of the business.”
At the time of Gordon Brothers’ acquisition, a spokesperson for the company told Inside Retail that it would be focused on “the next phase of growth for the business”, to support its “ongoing transformation”.
The receivers ensured that the business would continue its normal operations.
“Barbeques Galore is an iconic Australian business and operates a successful national retail network selling premium products. We expect strong interest from both retail operators and strategic financial investors seeking to participate in its future,” Quentin Olde said.
“The business will continue to trade as normal under the control of the Receivers with the guidance of David White and the Barbeques Galore team while we assess options for its future.”
This article was first published on Inside Retail.
