Johnston hoovers up Godfreys

The vacuum cleaner retailer will soon be taken private by its 99-year-old co-founder.

Godfreys has more than 200 franchises and company-owned stores nationally.

Godfreys will soon be wholly owned by its 99-year old co-founder after his stake in the company reached the 90 per cent mark, allowing him to compulsorily acquire the remaining shares in the vacuum retailer.

Arcade Finance, the investment vehicle of John Johnston who co-founded the vacuum retailer with Godfrey Cohen in the 1930s, made a takeover bid for the company in April and proposed a delisting in order to undertake an overhaul of the business and restore its value.

Godfreys shareholders who have not yet accepted Arcade’s offer of 33.5 cents per share will have until June 28, when the offer period closes, to do so.

“Godfreys shareholders who accept the offer by this time will receive the consideration to which they are entitled for their Godfreys shares within seven days of their acceptance being received,” the company said in a statement this morning.

“This is sooner than if they wait for those shares to be compulsorily acquired.”

Godfreys has a $30 million senior debt facility with principal financier, 1918 Finance, which is also controlled by Mr Johnston.

Today’s announcement follows a string of four profit warnings this year.

The company has more than 200 franchises and company-owned stores nationally but has suffered falling sales and a near-93 per cent drop in its share price since it listed in 2014.

Its market value has fallen from more than $100m when it listed, to below $10m.

Mr Johnston regained a controlling stake in the company before shaking up its senior executive ranks last month.

Former CEO John Hardy, the star of vacuum cleaner retailer Godfreys’ famous bowling ball TV ads, was announced as incoming chief executive once again last month.

Mr Hardy was chief executive of Godfreys from 1983 to 2010 and again from mid-2016 to 2017.