Vaccuum retailer Godfreys is to close after administrators failed to find a buyer for the business.
Administrator and PwC Australia partner Craig Crosbie said 55 expressions of interest and six indicative offers were received. However these were either withdrawn or proved insufficient to secure the retailer’s longer-term future.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,” Crosbie said in a statement.
“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 administrator told franchisees that Godfreys can no longer provide them with support.
Franchised stores can trade until 31 March 2024 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.
Twenty five head office staff roles were made redundant today, and all Godfreys’ staff have been informed all stores will be closed by 31 May 2024.
The store closures will bring to an end a 93-year-old journey for the Aussie retailer. At the time of going into voluntary administration in January Godfreys operated 141 stores, with franchisees owning and operating 28.
