It is the end of an Aussie backyard institution with the closure of an iconic retailer's stores across Australia, including 14 in Western Australia.
Receivership After Failed Rescue
Iconic retailer Barbeques Galore has officially gone into receivership after a last-ditch rescue deal failed. The collapse will result in 62 company-owned stores shutting their doors across the country, while about 500 workers nationwide face losing their jobs.
The failure is a major turnaround for the nearly 50-year-old retailer, which only weeks ago appeared to have been thrown a lifeline. In May, receivers backed a rescue proposal from owner and lender Gordon Brothers that would have kept the business alive, preserved about 500 jobs and allowed stores to continue trading.
Rescue Deal Unravels
Under that plan, unsecured creditors owed about $30 million were set to receive between 7 and 15 cents in the dollar, while Gordon Brothers would inject $5 million and forgo repayment of its secured debt. At the time, receivers described the proposal as the best chance to save the company, warning the alternative was liquidation and the closure of every store.
But the rescue ultimately unravelled after commercial trading terms could not be agreed with suppliers, effectively sealing the company's fate. Barbeques Galore first entered voluntary administration in February amid mounting liquidity issues, with hopes a restructure or sale could turn the business around.
Store Closures and Gift Card Restrictions
Store closures are expected to start from June 16. Customers holding gift cards have also been hit with a sting in the tail. While gift cards will be honoured until June 30, shoppers can only redeem them if they spend twice the card's value in cash. For example, a customer with a $50 gift card would need to make a $150 purchase and pay the remaining $100 themselves.
