Godfreys was established in 1931 and grew to become one of the world's largest retailers of vacuum cleaners. Photo: Google Maps
Vacuum cleaner retail chain Godfreys will close permanently by the end of May, after administrators were unable to find a suitable buyer to purchase the business.
Administrators were appointed to Godfreys in late January after the retailer collapsed in the wake of fewer sales due to cost of living pressures, which contributed to a "challenging economic operating environment".
On Wednesday afternoon, administrators appointed to oversee Godfreys confirmed that all 141 of its stores across Australia and New Zealand will close permanently by 31 May.
Administrators from PricewaterhouseCoopers (PwC) had been searching for a buyer for the business after it was placed into voluntary administration on 30 January. They received 55 expressions of interest and six indicative offers had been made.
But after a "comprehensive process to identify a purchaser for the business", none of the offers put forward for the retailer were considered "viable".
"With interested parties withdrawing and no satisfactory bids to acquire Godfreys store network yet received, the administrators have no other option but to commence a progressive wind-down of Godfreys' operations in Australia and New Zealand," the administrators said in a statement.
Administrator Craig Crosbie said it was a disappointing end for the retailer, which was first established in 1931, and would now begin the process to close its doors for good - unless there was a suitable offer made at the 11th hour.
"This is not the outcome Godfreys had hoped for following a rigorous process to find a purchaser for the business that could keep the store network trading," he said.
"In the absence of any further bidders coming forward as intermittent trading continues, the process of closing all remaining stores will progress over the next eight weeks.
"We recognise this is a difficult time for staff, franchisees, and other stakeholders, and we will continue to work closely with all parties to ensure they are informed and supported over the coming weeks."
Without a buyer, the decision to close Godfreys will see all 141 of its stores close in Australia and New Zealand, resulting in the loss of more than 600 jobs - including 25 staff working at its head office.
Since being appointed in January, administrators restructured the retailer's operations, which resulted in 54 store closures and the loss of 193 jobs by mid-February.
Godfreys stores will undergo a "phased closure" until 31 May, and can continue to trade on an "interim basis" to sell any remaining stock.
The closure also affects a number of Godfreys stores operated by franchisees, who have been informed by administrators that the company can "no longer support them" as of Wednesday.
Administrators said franchise stores can trade until 31 March and sell their remaining stock, or "return stock sold to them during the administration period to receive a credit on amounts owed to Godfreys".
Since its establishment in 1931, Godfreys grew to become one of the world's largest retailers of vacuum cleaners, with more than 220 store locations at its peak across Australia and New Zealand.
Godfreys became a well-known name in households after an advertising campaign starring its then-chief executive demonstrated the strength and suction power of its vacuum cleaners by lifting a 7-kilogram bowling ball, which went on to become a trademark of its advertisements.
This story was first published by the ABC.