Retail chain Barbeques Galore will wind up its operations in the coming weeks, resulting in the closure of 62 company-owned stores and the redundancy of hundreds of staff. The company, founded by Max Mason in the 1970s, entered voluntary administration in February and has since failed to secure a buyer or a viable recapitalization deal, according to official receivers.
Why did the rescue attempt fail?
The collapse follows a period of intense negotiation involving administrators, receivers, and major creditor Gordon Brothers. While a rescue deal was proposed in mid-May, it remained conditional on reaching agreements with various stakeholders, including suppliers and landlords. According to the receivers, these negotiations were ultimately unsuccessful, leaving no path to implement the deal and forcing the business to wind up.
What happens to staff and gift cards?
Approximately 500 staff members were employed by the chain at the time of its February collapse. Receivers stated that employees will continue to work during the winding-up process or will be made redundant as stores close. The receivers confirmed that all employees are set to receive their full accrued redundancies and termination payments as part of the separation process.
For customers holding gift cards, the chain will honor them until June 30, but with specific conditions first announced in February. Shoppers must spend $2 for every $1 redeemed on a gift card. For example, a $50 gift card requires a total purchase of at least $150, with the customer paying $100 out of pocket. After June 30, any unredeemed gift cards will be classified as unsecured debt, meaning customers are encouraged to use them before the deadline.
What about franchise stores?
The current wind-up applies specifically to the 62 company-owned locations. For the 27 stores owned by franchises, the receivers are working through “transitional arrangements.” The future of these individual franchise sites remains subject to these ongoing discussions rather than the immediate closure mandated for the company-owned retail outlets.
Frequently Asked Questions
- Is Barbeques Galore still accepting gift cards? Yes, they will be accepted until June 30, provided the customer meets the requirement of spending $2 for every $1 redeemed.
- Will staff be paid their entitlements? Yes, the receivers have stated that all employees will receive full accrued redundancies and termination payments.
- Are all stores closing? The 62 company-owned stores are closing in the coming weeks, while the 27 franchise-owned stores are subject to separate transitional arrangements.
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