Vacuum cleaner retailer Godfreys Group has entered voluntary administration, affecting its operations across Australia and New Zealand.
The move includes the group’s New Zealand retail stores and Australian entities.
Godfreys, which was founded in 1931, is a major supplier of speciality commercial floor care and associated cleaning products in Australia and New Zealand.
The group operates a network of 141 stores and employs more than 600 staff, with an additional 28 stores run by franchisees.
In New Zealand, the company oversees 16 operated and nine franchised stores.
The group has appointed PwC New Zealand partners Stephen White and John Fisk as voluntary administrators for the New Zealand Vacuum Cleaner Company, which is part of the Australian-owned Godfreys.
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Craig Crosbie, Robert Ditrich and Daniel Walley from PwC Australia are overseeing the administration of the Australian entities.
Godfreys will continue trading while PwC carries out an operational restructure and sale process.
This will lead to the closure of several stores, with administrators expecting five company-owned locations in New Zealand to shut down.
Stephen White said: “John Fisk and I will be working closely with the Australian administrators and Godfreys Group management to continue trading the restructured New Zealand store network during the administration in order to maximise the prospects of a going concern sale.”
The administrators will update staff and reach out to customers, suppliers and other stakeholders to communicate the impact of the administration and explain the forthcoming process.
Craig Crosbie said: “Like many retailers, Godfreys has 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.”