Barbeques Galore is set to close dozens of stores nationwide as a rescue plan fell through, leaving hundreds of workers without jobs. The retail chain will shut 62 stores and axe about 500 jobs after a rescue deal designed to save the 49‑year‑old retailer fell apart at the final hurdle.
Staff were expected to be told on Tuesday afternoon that the business will be wound up from June 16 despite creditors previously backing a $5 million rescue plan from primary lender Gordon Brothers. That deal collapsed when Gordon Brothers couldn’t secure trading terms with suppliers, killing off the only proposal that would have paid all employee entitlements and returned between 7 and 15 cents in the dollar to unsecured creditors.
The closures will hit every state and territory. There will be 33 stores shut in NSW, 19 in Victoria, 18 in Queensland, 14 in WA, five in SA, three in Tasmania, two in the ACT and one in the NT. Franchise stores remain unaffected and will keep trading.
The retailer plunged into administration in February after its key lender pulled a crucial revolving credit facility, leaving the business with $49 million in debts. Court filings showed $33.2 million owed to unsecured creditors, $15.2 million to secured creditors and $3.9 million in unpaid staff entitlements.
Barbeques Galore had only recently changed hands after Quadrant Private Equity sold it to Gordon Brothers in December, appointing David White as CEO. Receivers from Ankura initially explored a restructure or sale and assured customers stores would trade as normal. Orders and gift cards were being honoured under specific conditions.
Founded in 1977, Barbeques Galore has over 90 stores across the country and employs more than 500 people. It sells barbecues from a range of brands including Turbo, Beefmaster and Ziegler & Brown, as well as outdoor living and indoor heating products.
