The local retail landscape has been shaken by the news that Godfreys, the iconic vacuum cleaner retailer, has entered into administration after almost a century of operation.

This development has sent ripples of concern across the nation as the potential loss of 600 jobs looms over the company's workforce.

The Godfreys brand, established in 1931, has been a staple in many homes across Australia and New Zealand for nearly 100 years.

Known for its wide range of vacuum cleaners and cleaning products, the company has been a part of people’s domestic lives for generations.

Its unique television commercials have become a part of the cultural landscape, making Godfreys a household name.

Godfreys has gone into administration due to economic and operating challenges. Image source: Facebook/Godfreys.

However, the company has been grappling with a challenging economic and operating environment.

'Sadly, like many retailers, we have been heavily impacted 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.

'We are also still suffering from the unprecedented business disruptions of the COVID-19 pandemic.'

Craig Crosbie, Robert Ditrich, and Daniel Walley from PwC Australia were appointed as the company’s administrators.

'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,' Mr Crosbie said.

'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.'

For the New Zealand branch, Stephen White and John Fisk of PwC New Zealand were appointed as administrators.

The company's collapse threatens the livelihoods of 600 staff across its 141 stores in Australia and New Zealand.

An additional 28 stores run by franchisees are also at risk.

Of the 600, about 171 from Australia and about 20 in New Zealand are expected to lose their jobs.

The company's director, Grant Hancock, described the decision to appoint administrators as 'difficult'.

The administrators aim 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.'

Key Takeaways

• Godfreys, a prominent vacuum cleaner company, has entered into administration after nearly a century of operation.
• Economic challenges such as high inflation, rising interest rates, and intense cost-of-living pressures, exacerbated by the effects of the COVID-19 pandemic, were cited as reasons for the collapse.
• The collapse of the company puts approximately 600 employees' jobs at risk across its 141 stores in Australia and New Zealand, with some already expected to lose their employment.
• Administrators have been appointed to restructure Godfreys in an effort to preserve as much of the business and as many jobs as possible.

Members, do you use any of Godfreys' products at home? Let us know in the comments below.

 

[maherdj]

I've never brought anything from Godfreys but we use to fish in Hawaii with the founder of the Company Johno Johnson before he sold out and then brought it back again. He was very caring and dedicated man to his Customers, Staff and Friends. He always maintained if you look after your customers they look after you.