Godfreys is to close for good after administrators failed to find a buyer for the iconic vacuum cleaner chain.
Company, which was founded in 1931 during the Great Depression, appointed administrators at the end of January in the wake of falling sales and a ‘challenging economic environment’.
Despite closing 54 stores and cutting almost 200 jobs, administrators had hoped to find a buyer.
But on Wednesday afternoon they revealed that all stores in Australia and New Zealand will now close on May 31 after no ‘satisfactory bids’ were received.
“This is not the outcome Godfreys had hoped for following a rigorous process to find a buyer for the business who could maintain the store network,” said Craig Crosbie, administrator and partner at PwC.
Godfreys is to close for good after administrators failed to find a buyer for the iconic vacuum cleaner chain
The company was best known for its energetic advertisements featuring former CEO John Hardy (pictured)
‘If no further bidders come forward as intermittent trading continues, the process of closing all remaining stores will continue over the next eight weeks.
‘We recognize that this is a difficult time for staff, franchisees and other stakeholders, and we will continue to work closely with all parties to ensure they are informed and supported in the coming weeks.’
Employees have been informed of the impending closure and 25 head office employees have been laid off today.
The company reportedly received 55 expressions of interest and six indicative offers, but no binding offers.
Mr Crosbie had previously blamed ‘lower customer demand amid cost-of-living pressures, higher operating costs and increased competition’ for negatively impacting the company’s profitability.
But 80-year-old John Hardy, who was CEO of Godfreys for almost three decades and was the face of the vacuum cleaner company’s energetic TV ads, previously blamed the business model that followed his departure..
“It’s a very sad day when your life’s work just goes up in smoke,” Mr Hardy told Daily Mail Australia.
“When I left and they changed direction, I knew it wouldn’t last long. But what a shame. It’s a tragedy.’
John Hardy, who was CEO of Godfreys for almost three decades and the face of its high-energy TV ads, blamed the company’s failure on the business model that followed his departure.
The former CEO left three years ago after a dispute over the company’s direction.
Mr Hardy is best remembered by most Australians as the face of Godfreys, who starred in iconic advertisements for more than 35 years.
The commercials often included a quick sales pitch in which he demonstrated the power of a vacuum cleaner’s suction by lifting bowling balls or containers of jabs.
‘But only at Godfreys!’ was his closing slogan.
Mr. Hardy first served as CEO from 1983 to 2010 and for a second time in 2016-2017.
“I think it was a fantastic company for many years, but then unfortunately it lost its way and they tried to take it in a completely different direction… and it failed,” Mr Hardy said.
“I was in the business for 50 years and it was very profitable when I left.”
He added: ‘If you go away from the formula, it doesn’t work anymore.’
Mr. Hardy (pictured) started acting in the company’s commercials because they didn’t have the budget to pay a good actor
But his energetic and playful style became so popular and effective that he continued to do it for 35 years
Mr Hardy returned as CEO for a short period in 2018 after visionary co-founder John Johnston bought back the company at the age of ’99 and three-quarters’.
But when Mr Johnston died shortly afterwards, the business began to suffer, Mr Hardy claims.
“I left and watched it go downhill for three years, which was a real shame,” Mr Hardy said.
‘It’s not the same place anymore. The culture is different.’
He added: ‘We sold a lot of vacuum cleaners and the business was extremely successful for many years. Then they changed the formula and it just didn’t work anymore.’
‘We had a great relationship with all the suppliers around the world. We worked directly with them and I think they wanted to get rid of that model and only use third party products.
“That just doesn’t work in a specialty store environment.”
However, administrators give a different reason for the company’s collapse and make no mention of the fact that Godfrey no longer deals directly with suppliers.
Godfreys, founded in 1931 during the Great Depression, announced Tuesday afternoon that it would close 54 stores and cut nearly 200 jobs over the next two weeks.
Mr Hardy believes the company has not followed Mr Johnston’s original vision.
“They wanted to go in a completely different direction and become a mass marketer,” he said.
‘I don’t think they liked the advertising style we used. But it was very effective.’
Mr. Hardy started appearing in the company’s commercials because they didn’t have the budget to pay a good actor.
But his energetic and playful style became so popular and effective that he continued to do it for 35 years.
“We did it because we couldn’t afford to pay someone to do it,” Hardy said.
“But then they started working, so then I couldn’t stop.”
Regular surveys showed that customers were most interested in the power of vacuum cleaners and their ability to suck up dirt.
Mr Hardy (pictured left and below) admitted the ads ‘constantly embarrassed’ his children
They demonstrated this by picking up a 7 kg bowling ball using only the suction of the vacuum cleaner.
‘Now when I get on the plane and put my bag in the overhead locker, the hostess often says: ‘There’s no bowling ball in there, is there?’ And those ads were years ago!’ said Mr. Hardy.
“But it was never about me; it was all about the vacuum cleaners!’
Mr Hardy said the family of co-founder Godfrey Cohen was “mortified” by the company’s collapse.
Daily Mail Australia previously contacted Godfreys for comment on Mr Hardy’s claims.