Australia’s largest barbeque and outdoor furniture retailer, Barbeques Galore, is set to cease trading this month, resulting in hundreds of job losses and the closure of dozens of stores nationwide.
A rescue deal with suppliers could not be finalised, sealing the fate of the iconic brand.
The collapse will see 62 company-owned stores close their doors, impacting staff and customers across the country.
New South Wales will bear the brunt of the closures with 33 stores, followed by Victoria with 19, Queensland with 18, and Western Australia with 14.
South Australia will lose five stores, Tasmania three, the Australian Capital Territory two, and the Northern Territory one.
However, News Corp understands 27 franchise stores won’t be impacted by the closures.
MORE NEWS
‘Excessive’: Neighbours slam avian-giant’s resort plan
New Costco rivals shake up Australia’s grocery market
Boost Juice stores close amid tax drama
Store closures are slated to commence from June 16, with all gift cards honoured until June 30.
However, a significant caveat has emerged for gift card holders: cards will only be redeemable if customers spend twice their value in cash. For example, a customer wishing to redeem a $50 gift card will need to make a total purchase of $150, with $100 paid after the gift card credit is applied.
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)
Approximately 500 employees are facing redundancy, with staff expected to be informed of the news on Tuesday afternoon.
This devastating news comes just months after the company was placed into voluntary administration in February.
Liquidity issues were cited as the primary cause for the initial administration, with a restructure or sale initially earmarked as potential solutions.
However, these efforts have ultimately proven unsuccessful.
A deed of company arrangement proposal from Barbeques Galore’s primary lender, Gordon Bros, aimed at rescuing the company from administration, could not be signed off.
The inability to agree on commercial trading terms with suppliers ultimately scuppered the deal, as reported by the Australian Financial Review.
MORE NEWS: ‘Shut the f*** up’: Cafe’s megaphone showdown
Barbeques Galore franchisees Raj and Anju Khanal. Picture: Evan Morgan
At the time of the administration, Barbeques Galore’s chief executive, David White, had 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.
He added 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.
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.
