Godfreys Board Resigns, Arcade Director Takes Over
Disclosed in an ASX-statement, Godfreys board have announced their mass resignation, following the successful takeover of 99-year old Co-Founder John Johnston. The offer was made via his bidding vehicle Arcade Finance.
Godfreys Chairman Brendan Fleiter tended his resignation, effective 5pm May 22nd.
Arcade Finance Director, Grant Hancock, has been appointed the new Director of Godfreys’ board.
Non-executive Directors, Penny Burke, Kathy Gramp and Sue Morphet also announced their resignation, effective 5pm May 22nd.
Leaving with his peers, Godfreys Chief Financial Officer, Andrew Ford, has also resigned.
As previously reported, last week Co-Founder, John Johnston, won control of the ailing vacuum cleaner retailer, following a revised all-cash offer, from $13.1 million to $13.7 million.
Early this week Johnston reportedly achieved a majority stake, declaring his offer unconditional. The news prompted Kentgrove Capital and NGE Capital and to sell their shares to Arcade Finance.
Godfreys’ board had urged shareholders to approve Johnston’s bid, prior to the boosted offer. From the onset, Johnston made clear his intention to de-list and privatise the retail group.
Announced last night, Godfreys has advised Arcade Finance holds a 65% controlling stake in Godfreys Group Limited.
The news follows several consecutive periods of struggling sales, and declining revenue.
In its recent profit downgrade, management advised an underlying EBITDA [before one-off costs] of around $3.5 million, down from former forecasts of $5 million to $6 million.