Godfreys enters administration, with 54 stores to close

Three companions of PricewaterhouseCoopers (PwC) Australia have been appointed as voluntary directors of Godfreys’ Australian entities, with two PwC companions from New Zealand appointed over its New Zealand subsidiary, PwC introduced on Tuesday.

Established in 1931, Godfreys is without doubt one of the world’s largest vacuum retailers, working 141 shops and using greater than 600 employees throughout Australia and New Zealand, with one other 28 shops run by franchisees.

Most will proceed to commerce however 54 will shut shortly, leading to 171 employees in Australia and 22 in New Zealand being laid off.

Godfreys operates 12 shops in South Australia, in response to its retailer locator.

PWC associate Craig Crosbie mentioned like many retailers, Godfreys had confronted a difficult financial and working atmosphere.

“Decrease buyer demand amid price of residing pressures, greater working prices and elevated competitors have all taken a toll on profitability, with some shops extra impacted than others,” he mentioned.

“Our purpose is to maneuver shortly to restructure Godfreys to protect as a lot of the enterprise and as many roles as potential.”

The directors anticipate to promote the enterprise and belongings of the restructured enterprise as a going concern, with sturdy curiosity anticipated from potential consumers.

Godfreys was based in Melbourne by Godfrey Cohen through the Nice Melancholy, at a time when vacuum cleaners have been bought door-to-door and couldn’t be bought in Australian shops.

It listed on the ASX in late 2014 however was taken personal simply 4 years later after struggling from competitors from retailers resembling Harvey Norman, JB Hello-Fi, Amazon and Kogan.com.

-AAP

Supported by the Authorities of South Australia