Barbeques Galore to close 62 company stores after rescue deal collapses

Receivers for Barbeques Galore said a proposed rescue agreement has collapsed, leading to the planned closure of the retailer’s 62 company-owned stores beginning June 16. The group operates 89 stores in total. The remaining 27 franchisee-owned stores will continue under separate transitional arrangements.

Background to the collapse Barbeques Galore entered administration and receivership in February after failing to secure new financing terms. Creditors had approved a plan to keep the business operating, but negotiations with landlords and suppliers did not reach commercially acceptable terms.

Suppliers had been paid in advance during the receivership period. Some suppliers declined to return to credit-based supply arrangements, and certain Chinese suppliers could not obtain reinsurance under the proposed terms. The federal budget contributed to a sales decline, according to the receivers.

Losses exceeded $30 million over the past three financial years, while annual sales remained around $170 million.

Next steps and customer impact Receivers will continue trading while seeking buyers for remaining stores and assets, including the company name. Gift cards will stay valid until June 30 but require customers to spend two dollars for every one dollar of card value.

All employee entitlements, benefits, redundancies, and termination payments will be paid in full. The company has lost market share to Harvey Norman, Bunnings, and online retailers despite overall growth in the barbecue market.