New Zealand Vacuum Cleaner Company, part of the Australian-owned Godfreys Group and operator of its New Zealand retail stores, has entered voluntary administration.
Stephen White and John Fisk of PwC New Zealand have been appointed voluntary administrators of New Zealand Vacuum Cleaner Company, while Craig Crosbie, Robert Ditrich and Daniel Walley of PwC Australia are overseeing the group’s Australian entities.
Established in 1931, Godfreys is one of the world’s largest vacuum retailers and a leading supplier of specialty commercial floorcare and associated cleaning products. The business operates 141 stores and employs more than 600 staff across Australia and New Zealand, with an additional 28 stores run by franchisees. In New Zealand, there are 16 company operated and nine franchised stores.
During the administration period, the Godfreys business will continue to trade while PwC undertakes an operational restructure and sale process. A number of stores will be closed with the administrators anticipating that approximately five of these will be company owned stores in New Zealand.
Commenting on the appointment, Stephen White of PwC New Zealand said, “John and I will be working closely with the Australian administrators and Godfreys Group management to continue trading the restructured New Zealand store network during the administration to maximise the prospects of a going concern sale.”
Craig Crosbie of PwC Australia said, “Like many retailers, Godfreys has faced a challenging economic and operating environment. Lower customer demand amid cost-of-living pressures, higher operating costs, and increased competition have taken a toll on profitability, with some stores more impacted than others.”
The administrators will brief staff and contact customers, suppliers and other stakeholders to update them on the impact of the administration and outline the process.
The first creditor meeting will be held on 9 February 2024.