The family that owned Godfreys’ was losing up to $7M a month before they called in the administrators, with several organisations already looking at what can be rescued from the vacuum sales business.
It’s already been confirmed that the losses were primarily operational, and that Godfrey’s did not owe money to third party lenders, say source.
Administrators, PwC is currently running the stripped-down business with 54 loss making stores of the 141 operated across Australia set to be closed down.
Craig Crosbie, Robert Ditrich, and Daniel Walley of PwC Australia have been appointed as voluntary administrators of the Australian entities.
ChannelNews understands that Harvey Norman who acquired Seconds World in 2019 out of administration has been approached with a view to taking over Godfrey’s.
In New Zealand John Fisk and Stephen White of PwC New Zealand were appointed as voluntary administrators.
In the past Godfrey’s ran 141 stores and employs more than 600 staff across Australia and New Zealand, with an additional 28 stores run by franchisees, a major issue for the Company was the fact that they were unable to get the rights to sell Dyson products who despite selling a large number of their products direct and via their own stores in Australia is seen as a key floor cleaning brand for a retailer.
The administrators claim that they will continue to trade the Godfreys business while undertaking an immediate operational restructure and sale process.
ChannelNews understands that 193 staff, 171 in Australia and 22 in New Zealand are set to be terminated.
