Hundreds of unhappy customers were left without their money or orders after a national furniture chain announced it had gone into receivership.
Johnny’s Furniture, which had 15 stores spread across Queensland, New South Wales and Victoria, went into voluntary administration on Tuesday.
Many customers have been left in the lurch with no guarantee that they will get their money back. The news caused some customers to flock to stores to collect their orders, sparking a dispute at a Gold Coast outlet.
Administrator Shumit Banerjee of Westburn Advisory issued a statement about the company’s collapse that was seen in some store windows.
“While my appointment is in its infancy, my preliminary investigations indicate that the company had a significant decline in revenue during fiscal year 2024, which likely contributed to the Director’s decision to appoint me as a voluntary administrator,” it said.
National furniture retailer Johnny’s Furniture, which had 15 stores spread across Queensland, New South Wales and Victoria, went into voluntary administration on Tuesday.
The company’s creditors included lenders, staff, customers, the ATO, related parties and other government revenue offices.
Those who went to the stores to demand furniture or a refund instead received a letter confirming that an urgent assessment of the business was being carried out.
“The Company Director has indicated his desire to honor store credits and breaks, and we are currently working with the Director regarding this,” the letter said.
‘I am currently still marketing the business on a limited basis.
“We sympathize with customers with unfulfilled orders and ask for patience as we carry out our urgent assessment,” he continued.
“We anticipate a new update will be communicated to customers within the next 2-3 weeks.”
Those who went to the stores to demand furniture or a refund instead received a letter confirming that an urgent assessment of the business was being carried out.
Many customers are angry that they have not received their items or a money-back guarantee.
The letter added that all available options were being considered, including selling the business as a going concern or recapitalizing through a company memorandum of association.
Customers took to social media to share their complaints, with many posting the same experiences of long delays and defective products.
“I’m currently going through hell trying to get a refund from them,” one shared on Reddit.
‘I bought a room in November that was due to be delivered in January. February is coming and I have to call them.’
They added: ‘It’s been delayed. The same month after month.
Johnny’s website confirms the news and announces a “stock clearance sale” with a 60 to 70 percent discount on the entire store.
“They don’t call me to let me know, I have to call them when the shipment doesn’t arrive.”
Customers claim they were told refunds could not be processed in-store and were put in touch with Johnny’s customer service team.
“Two weeks later, they say the customer service team can’t do refunds, but head office can.”
The enraged customer said they are still waiting as of May 21 and have started the process with their bank to get the money back.
Another said he had ordered a lounge in October 2023 and was still waiting for it to be delivered seven months later.
“I was originally told to wait 3 months, the latest deadline being the end of June,” they shared.
“I recently walked into the Bundall store, sat down on the display couch I had ordered, said I liked it, and asked how long the wait was for one of these.”
They continued: ‘(The staff) obviously didn’t recognize me because it had been a long time since I placed an order for the exact same salon.
“The staff member proceeded to tell me a 3 month wait. I gave him my receipt from 7 months ago and asked him to look into this for me.”
A Queensland Police spokesperson confirmed he was called to a dispute at a store in Bundall on Saturday morning but did not attend.
“She apologized, gave me the receipt back and said she didn’t know what to do.”
A Queensland Police spokesperson confirmed he was called to a dispute at a store in Bundall on Saturday morning but did not attend.
A customer who was there to clear a table described the situation as “crazy.”
“There were people everywhere and security was bought when people came in asking questions,” they told the Gold Coast Newsletter.
‘People are hurt economically. It is a disaster.’
The newspaper reported that the owner of another furniture chain has registered a number of new businesses under the Johnny’s Furniture name, including store locations in Bundall, Helensvale, Kawana and Virginia.
Daily Mail Australia has contacted Johnny’s Furniture for comment.