PHOTO: Godfreys. FILE

Godfreys, an Australian retailer, has disclosed its decision to close down multiple stores in Aotearoa following its voluntary administration filing on Tuesday. Operated by New Zealand Vacuum Cleaner Company Limited, Godfreys will remain operational as administrators PriceWaterhouseCoopers (PWC) initiate a restructuring and sale process.

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Simultaneously, Godfreys Group has entered voluntary administration for its Australian business. The online food retailer, Supie, has also entered voluntary administration, acknowledging a debt of $3 million, with $2.1 million owed to over 4000 creditors.

Voluntary administrators Stephen White and John Fisk of PwC New Zealand have been appointed to oversee the New Zealand arm. They emphasize close collaboration with their Australian counterparts to ensure the ongoing operation of stores and enhance the chances of a successful sale as a going concern.

Godfreys, with a total of 16 company-operated and nine franchisee-operated stores in Aotearoa, is expected to retain only five of the company-operated stores, affecting over 600 staff in both Australia and New Zealand.

PwC Australia’s Craig Crosbie, Robert Ditrich, and Daniel Walley have been assigned the task of administration for the Australian segment. Crosbie attributes Godfreys’ challenges to tough economic conditions, including lower customer demand, cost of living pressures, higher operating costs, and increased competition, impacting profitability.

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In the upcoming days, the administrators plan to communicate with staff, customers, suppliers, and other stakeholders. Established in 1931 in Australia with its headquarters in Melbourne, Godfreys specializes in commercial floor-care and cleaning products.