Famous Australian retailer Godfreys collapses, goes into voluntary administration

Iconic retailer Godfreys claims cost-of-living pressures and inflation are the cause of its downfall, with nearly 200 people expected to be out of a job.

An iconic Australian retailer known for its vacuum cleaners has collapsed into administration, with nearly 200 expected to be out of a job.

Godfreys Group on Tuesday appointed voluntary administrators, citing cost-of-living pressures and inflation as the causes of its downfall.

Craig Crosbie, Robert Ditrich and Daniel Walley from PwC Australia have been appointed as administrators.

Meanwhile, Stephen White and John Fisk of PwC New Zealand have been appointed as administrators of the New Zealand branch.

The company is expected to continue operations during the operational restructure and sale process.

However, about 54 stores are expected to close in coming weeks, five of which are in New Zealand.

Iconic Australian retailer Godfreys has gone into administration.

Godfreys was established in 1931 and is best known for selling vacuum cleaners and other cleaning products.

It gained notoriety for its unique television commercials.

The loud advertisements often showed the strength and resilience of the company’s vacuum, with one being so strong it could suck up a bowling ball.

Another clip showed a vacuum being smashed with a sledgehammer.

“If you miss this you’ll kick yourself it’s gonna (sic) be huge,” one of the ads said.

Lots of clips involved a man screaming at the screen with dramatic zooming in and out of products.

One vacuum sucked up a bowling ball, according to the ads.

The iconic ads were known for their bizarre clips.

There are 141 stores across Australia and New Zealand employing more than 600 people.

A further 28 stores are run by franchisees.

Of the 600 employees, about 171 from Australia and about 20 in New Zealand are expected to be out of a job.

Mr Crosbie said the retailer had faced a “challenging economic and operating environment”.

“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,” he said on Tuesday.

“Our aim is to move quickly to restructure Godfreys to preserve as much of the business and as many jobs as possible. We intend to trade the restructured store network and sell the business and assets as an ongoing concern, with strong interest expected from prospective buyers.”

At least 54 stores will close in the coming weeks.

Company director Grant Hancock, said the decision to appoint administrators was “difficult”.

The administrators will be briefing staff and contacting customers, suppliers and other stakeholders in the coming days to inform them of the impact of the news.

The first meeting of creditors will be held on February 9.

Originally published as Famous Australian retailer Godfreys collapses, goes into voluntary administration