Say goodbye to Godfreys as entire chain prepares to shut down
By Jessica Yun
Godfreys is set to disappear from the Australian retail landscape after administrators failed to find a buyer for the 93-year-old business.
The vacuum retailer, which collapsed in January after failing to stay relevant in a fast-paced retail environment, will begin winding down its remaining 87 stores and eventually let go of more than 600 staff.
Say goodbye to Godfrey’s, the vacuum retailer dating back to the Great Depression.Credit: Louise Kennerley
PwC administrator Craig Crosbie said while he received 55 expressions of interest and six indicative offers, these were either withdrawn eventually or were not enough to keep the business alive.
“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,” he 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.”
Godfreys stores will remain open over the next two months to allow for the chance to clear existing stock before all stores are due to shut on May 31.
Franchisees will no longer receive support from Godfreys’ head office, where 25 staff have already been made redundant.
“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.”
Administrators have already shut 54 stores and axed nearly 200 jobs after taking over the business in late January.
The vacuum retailer was founded in 1931 by Godfrey Cohen and business partner John Johnston during the Great Depression and became renowned around the country for its memorable advertisements.
Over the years, however, Godfreys failed to keep up with innovation, missing out on the “stick” or cordless vacuum trend, in which retailers such as Harvey Norman and Bing Lee captured market share.
It also opened too many stores too quickly, which led to the retail chain becoming saddled with debt. The company also suffered from several changes to its structure and leadership.
Jane Allan, the daughter of late co-founder John Johnston, attributed the company’s recent woes to COVID-related disruption, a tougher economic environment and cost-of-living pressures.
Godfreys was sold to private equity in 2006 and listed on the ASX in 2014, but it saw high turnover, a revolving door of senior management and a perpetually sinking share price.
Johnston rescued the business twice over his lifetime, buying it back just in time for his 100th birthday in 2018 with the aim of delisting it, before he passed away later that year.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.