John Johnston, the 99-year-old co-founder of ailing Godfreys, has appointed Melbourne lawyer and corporate reconstruction specialist Nick Stretch as chairman of the group.

Mr Johnston and his Arcade Finance vehicle gained control of the stricken vacuum cleaner retailer on May 18 after major shareholders signalled they would sell into his higher takeover offer. He has since gathered up more acceptances and his stake now sits at 68 per cent.