The Australian retail chain Barbeques Galore will close all 62 of its company-owned stores, affecting approximately 500 employees, after a proposed rescue and recapitalization deal collapsed. The remaining 27 franchise-owned stores will continue operating under transitional arrangements.
Background and Timeline
Barbeques Galore entered voluntary administration and receivership in February 2024 due to liquidity problems. The company had been experiencing financial difficulties for several years, reporting losses exceeding $30 million over the past three financial years, with annual sales stagnating at approximately $170 million.
The retailer was founded in Sydney in 1976 and was co-founded by Peter Woodland and Max Mason. Quadrant Private Equity acquired the Australian operation in 2012. In October 2023, Gordon Brothers, a Boston-based distressed investment firm, acquired the secured lender position from Commonwealth Bank. In December 2023, Gordon Brothers also acquired Quadrant's equity stake. David White was appointed CEO in December 2023.
Failed Rescue Attempt
Administrators and receivers pursued a rescue recapitalization deal with Gordon Brothers, announced in mid-May. The proposed arrangement would have involved a $5 million injection and required suppliers to move from upfront cash payments back to credit terms. However, negotiations with landlords and suppliers failed to reach implementation.
Quentin Olde, receiver from Ankura, stated that some Chinese suppliers were unable to agree to terms because they could not obtain reinsurance, and several other suppliers refused to return to commercial credit terms.
"Some Chinese suppliers were unable to agree to terms because they could not obtain reinsurance, and several other suppliers refused to return to commercial credit terms."
— Quentin Olde, receiver from Ankura
Store Closures and Employee Entitlements
Store closures are scheduled to begin June 16 across all 62 company-owned stores in Australia, including 14 in Western Australia. The receivers stated that staff will be employed during the closure process or made redundant, with full accrued redundancy and termination payments to be provided.
Gift Card Policy
Gift cards will be honored until June 30 under the following condition: for every $1 of gift card value redeemed, customers must spend $2 in cash. For example, a $50 gift card requires a minimum $150 purchase, with the customer paying $100 out of pocket. Unredeemed gift cards after June 30 will be treated as unsecured creditors.
Unredeemed gift cards after June 30 will be treated as unsecured creditors.
Franchise Operations
The 27 franchisee-owned stores will operate under transitional arrangements and are anticipated to be unaffected by the closure of company-owned stores.
Creditor Meetings
A first meeting of creditors was scheduled for February 24, which will detail the scale of debts owed to third parties.