Barbeques Galore to close more than 60 stores, with hundreds of workers facing redundancy
Barbeques Galore is set to wind up operations in the coming weeks following a failed attempt to secure a buyer or recapitalisation. The retail chain, which entered voluntary administration in February, will close its 62 company-owned stores, impacting a workforce of approximately 500 employees. While the company will work through transitional arrangements for its 27 franchised locations, the primary business is moving toward a total shutdown.
Barbeques Galore has been a fixture in the retail landscape since the 1970s, having been founded by Max Mason.
Why the Rescue Attempt Failed
The decision to wind up the company follows the collapse of intensive negotiations between administrators, receivers, and major creditor Gordon Brothers. A proposed recapitalisation deal, announced in mid-May, was contingent upon reaching agreements with various stakeholders, including suppliers and landlords. According to the receivers, these negotiations ultimately failed to reach a position where the rescue deal could be implemented.
Samantha Carter notes that the failure to reach terms with landlords and suppliers highlights the extreme difficulty of restructuring a retail chain with a large physical footprint once it enters administration. The inability to secure these critical cost-saving agreements often leaves creditors with no choice but to pursue liquidation to mitigate further losses.
Impact on Employees and Customers
The 500 staff members currently employed by the chain face redundancy as the winding-up process proceeds. Receivers have stated that staff will continue to be employed during the transition or made redundant as stores close. The company has committed to paying all employees their full accrued redundancies and termination payments in the ordinary course of separation.
For customers, gift cards will remain valid only until June 30, and only under specific conditions. Shoppers must spend $2 for every $1 redeemed, meaning a $50 gift card requires a minimum purchase of $150. After the June 30 deadline, any unredeemed balances will be treated as unsecured claims against the company.
What Happens Next
As the company moves toward full closure, the primary task for receivers is the liquidation of assets and the finalization of transitional arrangements for the 27 franchised stores. It is likely that the coming weeks will see a steady reduction in retail activity as company-owned stores clear inventory. Following the June 30 cutoff, customers holding unused gift cards may find themselves in the position of unsecured creditors, with little prospect of recovering value.
Frequently Asked Questions
What happens to the 27 franchised stores?
The receivers will work through “transitional arrangements” for these stores, which are owned by individual franchisees rather than the parent company.
Are employees guaranteed their redundancy payments?
Yes, the receivers have stated that all employees will receive their full accrued redundancy and termination payments during the separation process.
Can I use my gift card after June 30?
No. After the June 30 deadline, unredeemed gift cards will be treated as unsecured debts, and the current redemption arrangement will no longer be available.
How do you believe the closure of such a long-standing retail chain will affect the broader outdoor living market?