In a significant development for the Australian retail sector, the iconic chain Barbeques Galore has been placed into receivership, casting uncertainty over hundreds of jobs across the country. According to documents filed with the Australian Securities and Investments Commission (ASIC), Liam Healy and Quentin Olde from Ankura were appointed as managers and receivers of the company on Thursday.
Business Operations to Continue Amid Restructuring
A press release issued by Barbeques Galore confirms that the receivers will actively pursue options to either restructure or sell the business. Despite the financial turmoil, the retailer has assured customers and employees that it will continue to operate as normal while these future possibilities are thoroughly explored. This move comes after the chain was acquired by US-based investment firm Gordon Brothers late last year, with David White announced as the new CEO at that time.
Leadership and Historical Context
Prior to the acquisition by Gordon Brothers, Barbeques Galore had been under the ownership of Quadrant Private Equity since 2012. David White expressed initial optimism about turning the business around, stating, "Management was excited to turnaround the business and move to the next evolution of the brand." He acknowledged that considerable progress had been made in recent months, leading to significant improvements across business operations. However, he cited ongoing liquidity challenges as the primary reason for the necessary restructuring.
Impact on Employees and Store Network
Founded in 1977, Barbeques Galore boasts over 90 stores nationwide and reportedly employs close to 500 people. The chain is renowned for selling barbecues from popular brands such as Turbo, Beefmaster, and Ziegler & Brown, along with a wide range of outdoor living and indoor heating products. Quentin Olde highlighted the company's strong market position, noting, "Barbeques Galore is an iconic Australian business and operates a successful national retail network selling premium products." He added that they anticipate strong interest from both retail operators and strategic financial investors looking to participate in its future.
Customer Assurance and Gift Card Policy
Barbeques Galore has reassured customers that all retail stores, including franchise locations, will continue to operate normally, with franchisees unaffected by the receivership and restructuring process. The company has committed to honouring in-store and online orders that are paid for or partially paid, provided stock is available to fulfil them. However, a notable change has been implemented regarding gift cards: for every $1 of gift card credit redeemed, holders must provide $2 in new consideration. This means that to use a $50 gift card, a customer must make a total purchase of $150, with $100 paid after applying the gift card credit.
Next Steps and Creditor Meeting
The receivers have indicated that a first meeting of creditors is likely to be held on February 24, where further details about the restructuring or sale process will be discussed. As the situation unfolds, stakeholders are closely monitoring developments, hoping for a resolution that preserves jobs and sustains this long-standing Australian retail brand.
