INDEPENDENT NEWS

Update On The Voluntary Administration Of Godfreys

Published: Wed 20 Mar 2024 07:58 PM
Auckland, 20 March 2024 – The Administrators of Godfreys Group of Companies (‘Godfreys’) today advise that after conducting a comprehensive process across Australia and New Zealand to identify a purchaser for the business, no viable offers to take the business forward as a going concern have been submitted.
With interested parties withdrawing and no satisfactory bids to acquire the Godfreys store network yet received, the Administrators have no other option but to commence a progressive wind-down of Godfreys’ operations in Australia and New Zealand.
Godfreys’ staff have now been informed that a phased closure of all stores will be initiated between now and 31 May 2024, unfortunately affecting their ongoing employment. This includes having to make 25 head office staff in Australia redundant as of today.
Godfreys stores will continue to trade on an interim basis to provide a reasonable period for the clearance of existing stock, after which stores will be notified that closures will take effect. Any organisations interested in purchasing any of the remaining stock are encouraged to contact the Administrators to discuss this.
Franchisees have been informed that Godfreys can no longer support them from today. 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. The Administrators anticipate that some of the Godfreys franchisees will aim to continue to operate their retail businesses into the future, albeit under different brands.
Administrator of Godfreys’ New Zealand entity, New Zealand Vacuum Cleaner Company Limited (Administrators Appointed) and PwC New Zealand Partner Stephen White said, “we have worked closely with the Australian administrators and Godfreys group management to find a buyer and are saddened this has not happened. We recognise this is a difficult time for staff, franchisees, and stakeholders, and will continue to work closely with all parties to ensure they are kept informed of progress and supported over the coming weeks.”
In a media release issued by the Australian administrators, Craig Crosbie said that while 55 expressions of interest and six indicative offers were received during the sale process, these were either since withdrawn or not sufficient in securing the business’ longer-term future.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. 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.

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