Charlotte Varcoe
MOUNT Gambier/Berrin’s Godferys store will remain open despite more than 50 stores shutting its doors.
The vacuum retailer first opened its doors in 1931 with more than 141 stores and 600 staff prior to its collapse.
A further 28 outlets are run by franchisees.
The group went into voluntary administration earlier this week with PricewaterhouseCoopers (PwC) being appointed as the voluntary administrators of the Australian entities.
PwC confirmed to The Border Watch the Mount Gambier/Berrin store would remain open with only two stores in South Australia set to close.
In a statement, administrator Craig Crosbie said like many retailers Godfreys faced a “challenging economic and operating environment”.
“Lower customer demand amid cost of living pressures, higher operating costs and increased competition has all taken a toll on profitability, with some stores more impacted than others,” Mr Crosbie said.
“Our aim is to move quickly to restructure Godfreys to preserve as much of the business and as many jobs as possible.
“We intend to trade the restructured store network and sell the business and assets as a going concern, with strong interest expected from prospective buyers.”
He said PwC would continue to “work closely” with Godfreys director, management and creditors including staff whose employment was impacted by store closures.
Godfreys director Grant Hancock said while the decision to appoint administrators was difficult it was made with “the best interests of Godfreys employees, customers and broader stakeholders in mind”.
The first meeting of creditors will be held on February 9.
