The owners of Armidale’s Barbeques Galore store say they are committed to continuing their business despite the collapse of the national retail chain and the closure of company-owned stores across Australia.
Barbeques Galore announced this week that efforts to save the business had failed after administrators were unable to secure a buyer or complete a recapitalisation deal, paving the way for the winding up of the iconic Australian retailer.
The company entered voluntary administration in February and had been pursuing a rescue package backed by major creditor Gordon Brothers. However, receivers confirmed negotiations with landlords, suppliers and other stakeholders had failed to reach an agreement that would allow the proposal to proceed.
As a result, the chain’s 62 company-owned stores will close in the coming weeks, while receivers work through “transitional arrangements” with the network’s 27 franchise-operated stores.
For Armidale store owners Reece Trickey and Sam Baker, the announcement creates some uncertainty but they remain committed to continuing the business.
“We aren’t sure what our future is right now as we work through a potential and probably rebrand.”
“All we know is that we are still here to stay,” Mr Trickey said.
The Armidale store is independently operated as a franchise rather than being one of the company-owned outlets set to close, and the local icon is confident of finding other suppliers.
Receivers said they would continue exploring options for remaining stores and assets during the wind-up process, including potential sales and stock liquidation.
The collapse marks a significant setback for one of Australia’s best-known outdoor living retailers. Founded by Max Mason in the 1970s, Barbeques Galore grew into a nationwide chain synonymous with the Australian backyard barbecue.
At the time of its administration in February, the business employed about 500 staff nationally.
Receivers said employees would remain employed during the receivership process where possible and would otherwise receive their full entitlements.
“All employees will be paid their full accrued redundancies and termination payments in the ordinary course of separation,” they said in a statement.
Customers holding Barbeques Galore gift cards have until June 30 to redeem them, although conditions apply. Under arrangements first announced when the company entered administration, customers must spend an additional $2 for every $1 redeemed from a gift card.
For example, a customer wishing to redeem a $50 gift card must make a purchase worth at least $150, paying an additional $100 on top of the gift card value.
Any unused gift card balances after June 30 will be treated as unsecured creditor claims.
The administrators and receivers had attempted to secure a rescue recapitalisation deal with Gordon Brothers, announced in mid-May, to avoid liquidation. The proposal depended on successful negotiations with landlords, suppliers and other parties.
However, receivers said that by late May it had become clear there were no viable offers to acquire or recapitalise the business that could be implemented.
Retail analysts said the difficult economic environment had made finding a buyer challenging.
The Montgomery Fund’s Roger Montgomery told the ABC the outcome was “a tragic final chapter for an iconic Australian retail brand”.
“If you can’t sell barbecues to Aussies, who can you sell them to?” he said.
Read all the way through to the end of the story? So did lots of other people. Advertise with New England Times to reach New England locals who are interested and engaged. Find out more here.