The administrators of Godfreys have been forced to commence a progressive wind-down of the retailer’s operations in Australia and New Zealand, following an unsuccessful search for a purchaser. No viable offers were submitted to take the business forward as a going concern.

While the administrators received 55 expressions of interest and six indicative offers during the sale process, these were either since withdrawn or not sufficient in securing the business’ longer-term future.

Godfreys’ staff have been informed that a phased closure of all stores will be initiated between now and 31 May 2024, affecting their ongoing employment. This includes having to make 25 head office staff redundant as of today.

Godfreys stores will continue to trade on an interim basis to provide a reasonable period for the clearance of existing stock, after which stores will be notified that closures will take effect.

Franchisees have been informed that Godfreys can no longer support them from today. Franchised stores can trade until 31 March 2024 to realise the value of existing stock or alternatively return stock sold to them during the administration period to receive a credit on amounts owed to Godfreys.

Administrator and PwC Australia partner, Craig Crosbie said, “This is not the outcome Godfreys had hoped for following a rigorous process to find a purchaser for the business that could keep the store network trading. In the absence of any further bidders coming forward as intermittent trading continues, the process of closing all remaining stores will progress over the next eight weeks,” he said.

“We recognise this is a difficult time for staff, franchisees, and other stakeholders, and we will continue to work closely with all parties to ensure they are informed and supported over the coming weeks.”