Australian Backyard Icon Faces Threat of Removal

Barbeques Galore, a longstanding symbol of Australian outdoor culture, is facing significant changes after entering receivership. This outdoor retailer, founded in Sydney by Max Mason in the 1970s, has become synonymous with barbecuing in Australia.

Background on Barbeques Galore’s Receivership

On a recent Thursday morning, global advisory firm Ankura appointed receivers for Barbeques Galore as the business struggled to find a buyer. Grant Thornton was also brought in as the voluntary administrator.

Current Business Operations

• Barbeques Galore operates 68 company-owned stores and has 27 franchise locations.
• Customers with existing orders will still have those orders fulfilled, whether fully or partially paid.
• Gift cards can only be used if customers spend twice their value in cash.

Financial Challenges

The primary cause of the company’s financial troubles has been cited as liquidity issues. CEO David White expressed optimism about previous improvements within the business, stating, “Considerable progress has been made in recent months.” However, ongoing liquidity challenges have led to the need for restructuring.

Potential Outcomes for the Business

The receivers aim to maximize returns for creditors while ensuring the company can continue operations. Roger Montgomery from Montgomery Investment Management noted that there must be sufficient cash or assets to meet short-term obligations. The receivers will explore options for restructuring or selling the business.

Impact on Staff and Future Outlook

With about 500 employees across nearly 100 stores, the future remains uncertain for Barbeques Galore staff. Montgomery indicated that the market for home improvement and barbecuing equipment has significantly changed, with competitors like Bunnings offering cheaper barbecue products.

• The receivers plan to communicate with key stakeholders, including suppliers and franchise owners.
• The first creditor meeting is scheduled for February 24, which may clarify the company’s financial situation.

The fate of Barbeques Galore, an iconic Australian backyard retailer, now hinges on the restructuring process and potential sale. As the receivers work through the complexities, many will be watching closely for the next steps in this evolving story.