Australia’s largest barbecue and outdoor furniture retailer, Barbeques Galore, has entered voluntary administration, putting around 500 jobs at risk and raising uncertainty for customers and suppliers. The appointment of administrators marks a major setback for the long-standing retail chain and highlights the ongoing strain across Australia’s discretionary retail sector.
The company formally entered voluntary administration on Thursday, with global firm Ankura appointed as receivers and managers. A first meeting of creditors has been scheduled for February 24, where the company’s financial future will begin to be decided.
Cash flow crisis at the centre of collapse
According to Barbeques Galore chief executive David White, the company’s cash flow position was the primary driver behind the decision to appoint administrators. A voluntary administrator described the business’s cash holdings as the largest immediate issue facing the retailer, signalling a liquidity crisis rather than a sudden shutdown of operations.
Administrators will now assess whether the business can be restructured or sold, a common pathway for companies entering voluntary administration.
Scale of the business and jobs at risk
Barbeques Galore operates 68 company-owned stores and 27 franchise stores across Australia and employs about 500 staff. The administration process primarily affects the company-owned network, while franchise-owned stores are not impacted by the insolvency process.
The future of the workforce and store network will depend on whether a buyer or restructuring plan can be secured during the administration period.
Gift cards cut to one-third value
Customers have already felt the immediate impact. Receivers confirmed that gift vouchers will now be significantly reduced in value, requiring customers to spend $2 in cash for every $1 redeemed. In practical terms, a customer holding a $100 voucher must spend $200 to use it.
Despite the changes, the receivers said that items already paid for or partially paid for will still be delivered, offering some reassurance to customers with pending orders.
What voluntary administration means for the retailer
Voluntary administration allows an independent administrator to examine a company’s finances while it continues trading. During this period, options such as refinancing, restructuring, or a sale are explored to determine whether the business can survive.
For Barbeques Galore, the coming weeks will be critical. The outcome of creditor meetings and restructuring negotiations will decide whether the iconic outdoor retailer can continue operating or faces further closures.