Godfreys: Iconic vacuum cleaner company collapses into administration after 100 years
A well-known name in vacuum cleaners, Godfreys, has entered administration after almost 100 years.
The iconic brand cited pressure on consumer spending caused by high inflation and pressure on the cost of living as reasons for its demise.
“Unfortunately, like many retailers, we have been hit hard by consumer confidence and spending due to the economic era of high inflation, rising interest rates and intense cost-of-living pressures,” said Jane Allen, daughter of co-founder John Johnston. on Tuesday.
“We also continue to suffer from the unprecedented business disruptions of the COVID-19 pandemic,” she added.
Craig Crosbie, Robert Ditrich and Daniel Walley of PwC Australia have been appointed as administrators.
Stephen White and John Fisk from PwC New Zealand have been appointed as managers of the New Zealand branch.
The collapse of the famed company and its 141 stores in Australia and New Zealand threatens the livelihoods of 600 employees.
Another 28 stores are run by franchisees.
Of the 600, about 171 from Australia and about 20 from New Zealand are expected to be out of work.
The collapse of the famous company and its 141 stores in Australia and New Zealand threatens the livelihoods of 600 employees
Mr Crosbie said the retailer has faced a “challenging economic and operating environment”.
“Lower customer demand due to cost of living pressures, higher operating costs and increased competition have all taken a toll on profitability, with some stores hit harder than others,” he said on Tuesday.
'Our aim is to take swift action to restructure Godfreys to retain 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 potential buyers.”
Company director Grant Hancock said the decision to appoint administrators was “difficult”.
Godfreys was founded in 1931 and is best known for selling vacuum cleaners and other cleaning products.
It gained fame for its unique television commercials.
The first meeting of creditors will take place on February 9.
“Lower customer demand due to cost of living pressures, higher operating costs and increased competition have all taken a toll on profitability, with some stores hit harder than others,” administrator Craig Crosbie said on Tuesday.