Godfreys will close its doors permanently, leading to the loss of 600 jobs and the closure of 141 stores after administrators failed to find a buyer for the iconic vacuum cleaner chain.
The company, which was founded in 1931 during the Great Depression, appointed administrators at the end of January following a decline in sales and a “challenging economic environment”.
Despite the closure of 54 stores and the loss of almost 200 jobs, administrators hoped to find a buyer.
But on Wednesday afternoon they revealed all stores in Australia and New Zealand would now close on May 31 after no “satisfactory offers” were made.
“This is not the outcome Godfreys had hoped for after a rigorous process to find a buyer for the business who could keep the store network operating,” said Craig Crosbie, director and partner at PwC.
Godfreys to close permanently after administrators fail to find a buyer for the iconic vacuum cleaner chain
The company was best known for its energetic advertisements featuring its former CEO John Hardy (pictured)
“In the absence of further bidders while intermittent trading continues, the process of closing all remaining stores will progress over the next eight weeks.
“We recognize that 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 during the weeks to come.”
Employees have been informed of the imminent closure and 25 head office employees were made redundant today.
The company has reportedly received 55 expressions of interest and six indicative offers, but no binding offers.
Mr Crosbie previously blamed “falling customer demand amid cost of living pressures, higher operating costs and increased competition” as taking a toll on the company’s profitability. .
But John Hardy, 80, who was CEO of Godfreys for almost three decades and was the face of the vacuum company’s energetic TV adverts, had previously blamed the company’s failure on the business model that followed its departure..
“It’s a very sad day when your life’s work evaporates,” Mr Hardy told Daily Mail Australia.
“When I left and they changed direction, I knew it wouldn’t last. But what a shame. It’s a tragedy.
John Hardy, CEO of Godfreys for almost three decades and the face of its energetic TV adverts, blamed the company’s failure on the business model that followed his departure.
The former CEO left the company three years ago after a dispute over the direction of the company.
To most Australians, Mr Hardy is best known as the face of Godfreys, having starred in its iconic adverts for more than 35 years.
The ads often featured a quick sales pitch as he demonstrated the strength of a vacuum cleaner’s suction power by lifting bowling balls or trays of bites.
“But only at Godfreys!” » was his final slogan.
Mr. Hardy first served as CEO from 1983 to 2010, then a second time in 2016-2017.
“I think it was a great business for many years and then unfortunately it lost its way and they tried to take it in a completely different direction… and it failed,” Mr Hardy said.
“I spent 50 years in the business and it was very profitable when I left it.”
He added: “When you move away from the formula, it doesn’t work anymore.”
Mr Hardy (pictured) began acting in the company’s adverts because they did not have the budget to pay a suitable actor.
But his energetic, playful style became so popular and effective that he continued to practice it for 35 years.
Mr Hardy returned to the role of CEO for a brief period in 2018 after visionary co-founder John Johnston bought the company at the age of 99 and three quarters.
But when Mr. Johnston died shortly afterward, the business began to suffer, Mr. Hardy says.
“I left and watched things deteriorate for three years, which was a real shame,” Mr Hardy said.
“It’s not the same place anymore. The culture is different.
He added: “We sold a lot of vacuum cleaners and the company was hugely successful for years and years and then they changed the formula and it didn’t work anymore.”
“We had excellent relationships with all suppliers around the world. We dealt directly with them and I think they wanted to move away from that model and only use third party products.
“It just doesn’t work in a specialty retailer environment.”
The directors, however, give a different reason for the company’s collapse and make no mention of Godfreys ceasing to deal directly with suppliers.
Godfreys, founded in 1931 during the Great Depression, announced on Tuesday afternoon that it would close 54 stores and cut almost 200 jobs over the next fortnight.
Mr Hardy believes the company has not followed Mr Johnston’s original vision.
“They wanted to go in a completely different direction and become a mass merchandiser,” he said.
“I think they didn’t like the style of advertising we did. But it was very effective.
Mr. Hardy began acting in the company’s commercials because they did not have the budget to pay a decent actor.
But his energetic, playful style became so popular and effective that he continued to practice it for 35 years.
“We did it because we couldn’t afford to pay anyone to do it,” Mr Hardy said.
“But then they started working, so I couldn’t stop doing it. »
Regular surveys found that customers were most interested in the strength of vacuum cleaners and their ability to pick up dirt.
Mr Hardy (pictured left and below) admitted the adverts were a “constant annoyance” to his children.
They demonstrated this by picking up a 7 kg bowling ball with just the suction force of the vacuum cleaner.
“When I get on a plane now and put my bag in the overhead compartment, the stewardess often says to me, ‘There’s no bowling ball in there, is there?’ These ads are from years ago!’” Mr. Hardy said.
“But it was never about me, it was all about the vacuum cleaners!”
Mr Hardy said co-founder Godfrey Cohen’s family was “mortified” by the company’s collapse.
Daily Mail Australia previously contacted Godfreys for comment on Mr Hardy’s claims.