Barbeques Galore Files for Bankruptcy, Putting 500 Jobs at Risk
Barbeques Galore, Australia’s leading barbecue and outdoor furniture retailer, has filed for voluntary administration, putting approximately 500 jobs at risk. The appointment of a voluntary administrator followed serious cash flow issues within the company. Store gift cards have been significantly diminished in value, now only redeemable at one-third of their face value.
Company Overview and Financial Struggles
Barbeques Galore operates 68 company-owned stores and manages 27 franchise locations across Australia. The global consulting firm Ankura has been designated as the receivers and managers of the company. A first meeting for creditors is set for February 24.
Barbeques Galore’s financial difficulties include a pre-tax loss of $16.1 million in the 2024 financial year, an increase from the $4.7 million loss posted in 2023. In total, the company generated revenue of $172 million during the same period, consistent with its earnings from the previous year.
Implications for Employees and Customers
With the transition into administration, those holding vouchers for Barbeques Galore will face an unfavorable redemption rate. For instance, to use a $100 voucher, customers will need to spend an additional $200 in cash. However, items that customers have partially paid for will still be delivered.
- Vouchers: Redeemable at one-third of value
- Cash redemption: $2 paid for every $1 voucher worth
- Job security: 500 jobs are currently at risk
Executive Insights
David White, the chief executive of Barbeques Galore, emphasized that cash flow challenges were the principal issue leading to the restructuring decision. “Management was optimistic about revitalizing the brand, yet persistent liquidity problems necessitated this course of action,” he stated.
Union Response and Support
The Retail, Fast Food and Warehousing Union (SDA) has expressed its concern over the situation. A spokesperson stated the need for assurance regarding workers’ legal entitlements, particularly as employees in the retail sector often earn low wages. “The union stands ready to support Barbeques Galore workers during this challenging period,” they declared.
Company History and Previous Ownership
Founded in Sydney in 1977, Barbeques Galore rapidly expanded and even ventured into the United States market. Following a series of ownership changes, including a buyout by Gordon Brothers in late 2025, the company has faced significant ups and downs, including a bankruptcy of its U.S. division during the 2008 financial crisis.
Holding significant market share in Australia, the ongoing developments at Barbeques Galore will affect thousands, from employees to consumers, as the company seeks a path forward.
