Godfreys co-founder takes back business

Plans to de-list from ASX.

Arcade Finance director and Godfreys’ 99-year-old co-founder, John Johnston has secured a takeover of the vacuum specialist upon obtaining a 91% stake in the business.

Johnston first submitted a conditional all-cash off-market takeover bid in April, proposing that the company de-list from the Australian Securities Exchange (ASX) after long-term share price declines, if the takeover was successful. This proposal aims to restore the company’s value and confidence in employees, franchises and suppliers with respect to its performance, according to Arcade.

One month later, Godfreys like-for-like sales plummeted 27% in a two-week period, blamed on changes to its advertising campaigns. Company directors then encouraged shareholders to accept the offer from Arcade, in the absence of a superior alternative.

More recently, Godfreys posted a 14.8% decline in like-for-like sales for the month to June 15 and warned of EBITDA in the range of zero to $1.5 million for FY18.

Godfreys also welcomed back former CEO, John Hardy as interim CEO, following the resignation of Jason Gowie. Hardy was at the helm from 1983 to 2010 and again from mid-2016 to December 2017. Godfreys also appointed former COO of the Munro Footwear Group David Lee as CFO after Andrew Ford announced his resignation.

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