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.

 

[Suzanne rose]

The last vacuum cleaner I purchased from Godfrey's was a Vax.
The Problem over the Past few years was actually finding a shop near you, when needing repairs or bags.

I now have a stick vacuum which my son bought me from another company. I don't need more at I have floorboards and tiles

 

[Veggiepatch]

That sucks....

 

[magpie1]

Advancements in Technology waits for no man......something like that.

 

[DLHM]

So sad how many companies have had to shut their doors permanently. It’s a world wide phenomenon.

 

[Veggiepatch]

So sad how many companies have had to shut their doors permanently. It’s a world wide phenomenon.

So we can kiss the boots of multinational companies such as Amazon and the like.

 

[Marie Sedunary]

I have always bought my vacuum cleaners and repairs from Godfreys service has always been very good. Very sad to see the closure of the store hopefully there will be some saving of some of the stores....

 

[IAN3005]

So sad how many companies have had to shut their doors permanently. It’s a world wide phenomenon.

one of many to come......

 

[Bob’s Buddy]

Yes, it is very sad to see another icon from the past go, something we all grew up with. You are certainly right Veggiepatch, Amazon and the like just power on in! Also, good comment Magpie1! Mind you, the quality of things today are no way up to the quality we used to get, don’t like this disposable wasteful world we live in. They will all go a running when the money disappears.

 

[Suzanne rose]

In Sydney it was only a couple of stores that closed including Burwood and Bondi Junction they were all closed by Friday but they did however open a new store in Dee Why.
I'm thinking this is a bit of a sales gimmick to get people to rush in before they close. In Sydney mist of the stores are staying open , well so says the Godfrey's manage in the Auburn store

 

[IAN3005]

Most stores are hanging by the skin of their teeth ... it's only the lease that is keeping them around.... they are liable for the rent open or closed...

 

[Hel]

I never like them, treated customers like idiots.

 

[DLHM]

I never like them, treated customers like idiots.

All customers, or only the idiots?

 

[Hel]

All customers, or only the idiots?

So not a customer then?

 

[DLHM]

So not a customer then?

I’ve purchased products from Godfrey’s in the past and was not treated like an idiot.

 

[Suzanne rose]

I’ve purchased products from Godfrey’s in the past and was not treated like an idiot.

How are you enjoying Sydney ? The weather has been so humid . We normally have humidity but nothing like its been.
I've just awoken to cooler temp finally and rain .

 

[DLHM]

How are you enjoying Sydney ? The weather has been so humid . We normally have humidity but nothing like its been.
I've just awoken to cooler temp finally and rain .

The time is passing so quickly. Haven’t done very many touristy things. Mostly shopping and so much walking!!! Getting used to the buses and trains. The Opal app is very helpful! I’m too scared to drive in Sydney. Suburbs would be ok.
Also my granddaughter has started at Brent Street and we’re helping her get set up with her move from Perth. Pity she forgot to bring her umbrella, she’ll get wet today. She’ll only be working two evenings per week after dance. Will be very long days for her.
The humidity reminds me of Bali! Ugh! Walking in heat and humidity are not a great combo for me. Went to a doctor yesterday (not for that ) and even he commented on the higher than usual humidity.
But it’s all good. As I said, time’s going to quickly and busy everyday!
Thank you for asking @Suzanne rose!

 

[Hel]

I’ve purchased products from Godfrey’s in the past and was not treated like an idiot.

I guess it depends on the individual store but it left such a bad taste in my mouth at the way my mother was treated, I would never buy another thing there.

 

[Suzanne rose]

I guess it depends on the individual store but it left such a bad taste in my mouth at the way my mother was treated, I would never buy another thing there.

I hope you submitted a complaint to head office.
Even if it's a franchise they are still under the companies name

 

[DLHM]

I guess it depends on the individual store but it left such a bad taste in my mouth at the way my mother was treated, I would never buy another thing there.

Fair enough. I understand your reasons. I would probably feel the same way if a member or members of staff treated someone from my family badly or in a humiliating fashion.