Barbeques Galore to close 62 stores after rescue deal fails

Barbeques galore is set to cease trading this month after a rescue deal with suppliers could not be finalised, forcing 62 company-owned stores to close. About 500 employees now face redundancy, while 27 franchise stores will keep trading.

June 16 store closures

Store closures are slated to commence from June 16, starting the wind-down across New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory. New South Wales will lose 33 stores, Victoria 19, Queensland 18, Western Australia 14, South Australia five, Tasmania three, the Australian Capital Territory two and the Northern Territory one.

All gift cards will be honoured until June 30, but redemption comes with a catch: customers must spend twice the card’s value in cash. A $50 gift card, for example, can only be used on a $150 total purchase, with $100 paid after the credit is applied.

Gordon Bros deal failed

The collapse follows Barbeques Galore’s placement into voluntary administration in February, after liquidity issues prompted the initial move. A deed of company arrangement proposal from its primary lender, Gordon Bros, was meant to rescue the retailer from administration.

That proposal could not be signed off, and the business could not agree on commercial trading terms with suppliers. For shoppers, that means the retailer is moving into closure mode rather than a turnaround, while franchise stores remain outside the closure plan.

Tuesday afternoon staff briefing

Staff are expected to be informed of the news on Tuesday afternoon, leaving a short runway before the June 16 shutdown starts. The most immediate practical step for customers is to use gift cards before June 30 if they can meet the cash-spend condition, while employees face the prospect of redundancy as the store network is pared back.