Home > Latest News > BREAKING NEWS: Godfrey’s Can’t Be Saved Hundreds Of Jobs To Go

BREAKING NEWS: Godfrey’s Can’t Be Saved Hundreds Of Jobs To Go

Hundreds of jobs are set to go with the announcement that the 100 year old Godfreys appliance store network is set to be closed down despite attempts by administrators to save the business.

The administrators of Godfreys Group announced this afternoon, that after conducting a comprehensive process to identify a purchaser for the business, no viable offers have been submitted with consumers choosing to shop at the likes of The Good Guys and JB Hi Fi and Bing Lee for appliances spelling the end for the business.

“With interested parties withdrawing and no satisfactory bids to acquire 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,” the administrators said in a statement.
Godfreys’ staff have now been informed a phased closure of all stores will be initiated between now and May 31, affecting their ongoing employment. This includes having to make 25 head office staff redundant as of Wednesday.

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 closures will take effect.

Craig Crosbie, Robert Ditrich, and Daniel Walley of the restructuring arm of PwC Australia were appointed to try and restructure the business.

ChannelNews understands that the family who built the business sold it and then bought it back stand to lose millions of dollars.

Initially it was thought that Godfreys Group Pty Ltd and its subsidiaries in Australia and New Zealand could continue as a going operation but that has proved a difficult task due in part to online stripping share from Godfrey’s.

Godfreys has been an established business for nearly 100 years, beginning operations in 1931.

Godfrey Cohen launched the first eponymous Godfreys store in Melbourne’s Prahran Market.

“Like many retailers, Godfreys has faced a challenging economic and operating environment,” Mr Crosbie said.

“Lower customer demand amid cost of living pressures, higher operating costs, and increased competition have all taken a toll on profitability, with some stores more impacted than others.”

The director of Godfreys, Mr Grant Hancock, said in January “While the decision to appoint Administrators was difficult, it was made with the best interests of Godfreys’ employees, customers and broader stakeholders in mind.”

The administrators received 55 expressions of interest and six indicative offers during the sale process, these were either since withdrawn or not sufficient in securing the business’ longer-term future.

Godfreys’ staff have been informed that a phased closure of all stores will be initiated between now and 31 May 2024, affecting their ongoing employment. This includes having to make 25 head office staff redundant as of today.

 



You may also like
Tineco Launches New Steam Wet & Dry Vacuum
Woolworths Wants Costco And Amazon Included In Proposed New Retail Code Of Conduct
Should JB Hi Fi Be Copying Aldi Specials?
CE Retailer April Fools Day Joke Was Seriously Hot
Nothing Phone (2a) Gains Camera Improvements In New Update