Barbeques Galore collapses into receivership with 500 Australian jobs now in jeopardy
Australia’s largest barbecue and outdoor furniture retailer, Barbeques Galore, has plunged into receivership, placing the jobs of approximately 500 staff across the country in jeopardy.
The iconic retailer, a fixture in Australian homes for nearly 50 years, called in administrators on Thursday after efforts to secure a buyer failed amid mounting liquidity issues.
Global advisory firm Ankura has been appointed as receiver, with Grant Thornton taking on the role of voluntary administrator.
The news sends shockwaves through the retail sector, particularly given the company’s significant footprint of 68 company-owned stores and 27 franchise outlets across the nation.
This includes 33 stores in NSW, 19 in VIC, 18 in QLD, 14 in WA, five in SA, three in TAS, two in the ACT, and one in the NT.
Despite the collapse, receivers have assured customers that Barbeques Galore will “continue normal operations” while its future is evaluated, aiming for either a restructure or a sale of the business.
Crucially, all in-store and online orders that have been paid for, or part-paid for, will be honoured.
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Australia’s largest barbecue and outdoor furniture retailer, Barbeques Galore, has plunged into receivership, placing the jobs of approximately 500 staff across the country in jeopardy. Facebook (Barbeques Galore Australia)
However, a significant caveat for gift card holders has emerged: cards will only be redeemable if customers spend twice their value in cash.
For instance, to redeem a $50 gift card, a customer is required to make a total purchase of $150, of which $100 must be paid after applying the gift card credit.
Franchise operations are expected to remain unaffected by the appointments and the impending restructuring process, providing some stability for those independent businesses.
The announcement comes a mere two months after the retailer was acquired by US private equity group Gordon Brothers, a firm known for specialising in troubled assets.
Around 500 staff and 95 stores are said to be impacted.
At the time of the sale, Barbeques Galore’s chief executive, David White, expressed optimism. “Management was excited to turn around the business and move to the next evolution of the brand,” Mr White stated, according to the Daily Mail, adding that “considerable progress has been made in recent months leading to significant improvements across the business and operations.”
However, these efforts were ultimately insufficient to overcome “ongoing liquidity challenges,” which Mr White cited as the reason for the necessary restructuring.
A first meeting of creditors is anticipated to be held on February 24, as reported by The Australian, where the company’s financial position will be further scrutinised.
The collapse marks a poignant moment for a brand deeply embedded in Australian culture, co-founded nearly five decades ago by the late Peter Woodland.
Mr Woodland, a prominent Sydney businessman also known for co-founding BeefEater Barbeques, tragically died in a helicopter crash in April 2022.
