Godfreys In Trading Halt, Downgrade Fears Mount
Struggling vacuum cleaner specialist, Godfreys, has entered an ASX trading halt, as fears mount over the possibility of another profit downgrade.
As previously reported, major shareholder and Godfreys Co-Founder, John Johnston (99), presented a 32c/per share takeover offer in early April, which will see the retailer privatised.
Turning 100 years old in a few months, Mr Johnston owns a 28% stake in Godfreys.
The trading halt reportedly leaves Mr Johnston in the dark, as to whether another profit downgrade is incoming.
Disclosed in an ASX announcement, Godfreys states it “expects to make a material announcement to the market in relation to the company’s earnings guidance”.
At latest, the trading halt is expected to remain until May 9th.
On April 23rd, Godfreys advised the market it had breached a debt covenant, however, warned the technical term was irrelevant as it has already received a waiver from Mr Johnston’s financing division.
According to afr, Mr Johnston has advised he won’t be offering any more waivers.
The news follows the appointment of new Godfreys Chief Executive, Jason Gowie, who pledged to turnaround the company’s 222 Australian and New Zealand stores.
Admitting that company performance was subdued, Godfreys affirmed “good progress” has been made in five areas of its recently implemented turnaround strategy, via an ASX announcement.