Hundreds of dissatisfied customers are left without their money and their orders after a national furniture chain announced it has gone bankrupt.
Johnny’s Furniture, which has 15 stores across Queensland, New South Wales and Victoria, entered voluntary administration on Tuesday.
Many customers have been left in the lurch without any guarantee of getting their money back. The news prompted some customers to come to stores to collect their orders, leading to a dispute at a Gold Coast store.
Westburn Advisory administrator Shumit Banerjee issued a statement on the company’s collapse, which was visible in the windows of some stores.
“Although my appointment is still in its early stages, my preliminary investigations indicate that the company experienced a significant decline in revenue during the 2024 financial year, which likely contributed to the director’s decision to appoint me as a volunteer director,” it said.
National furniture store Johnny’s Furniture, with 15 stores across Queensland, New South Wales and Victoria, went into voluntary administration on Tuesday
The company’s creditors included lenders, staff, customers, the ATO, related parties and other government revenue offices.
Those who came to stores to demand furniture or a refund were instead sent a letter confirming that an urgent review of the company was underway.
“The company’s president has indicated his desire to honor store credits and parking, and we are currently working with the president,” the letter said.
‘I am currently continuing the activities to a limited extent.
“We sympathize with customers with unfulfilled orders and ask for patience as we conduct our urgent review,” the report continued.
‘We expect a further update to be communicated to customers within the next 2-3 weeks.’
Those who came to the stores to demand furniture or a refund were instead sent a letter confirming that an urgent review of the company was underway
Many customers are furious because they have not received their items or were not guaranteed a refund
The letter added that all available options were being considered, including the sale of the company as a going concern or recapitalization through a company deed.
Customers shared their complaints on social media, with many posting similar experiences of lengthy delays and defective products.
“I’m currently in the process of trying to get a refund from them,” someone shared on Reddit.
‘Bought a lounge set in November that would be delivered in January. It’s February and I have to call them.’
They added: “It has been postponed. Same thing month after month.’
Johnny’s website confirms the news and advertises a ‘stock liquidation sale’ with 60 to 70 percent off storewide
“They don’t call me to tell me, I have to call them if the delivery doesn’t arrive.”
The customers claim they were told refunds could not be processed in-store and contacted Johnny’s customer service.
“Two weeks later they say the customer service team can’t issue a refund, but head office can.”
The irate customer said that as of May 21, they are still waiting and have started the process with their bank to withdraw the money.
Another said they ordered a lounge in October 2023 and are still waiting for it to be delivered seven months later.
“We were originally told a three month wait, the last eta at the end of June,” they shared.
‘I went into the Bundall store recently, sat down on the display bench I ordered, said I liked it and asked how long the wait is for one of these.’
They continued: ‘[Staff] Obviously I didn’t recognize myself because it’s been so long since I placed an order for the exact same lounge.
‘The staff member then told me I had to wait three months. I handed her my receipt from seven months ago and asked her to look into it for me.”
A Queensland Police spokesperson confirmed it was called to a dispute at a Bundall store on Saturday morning but was not present
“She apologized, gave the receipt back and said she didn’t know what to do.”
A Queensland Police spokesperson confirmed it was called to a dispute at a store in Bundall on Saturday morning but did not attend.
One customer, who came to pick up a table there, described the situation as ‘crazy’.
“There were people everywhere and security was provided as people came in and asked questions,” they told the newspaper Gold Coast Bulletin.
“People are getting hurt financially. It is a mess.’
The newspaper reported that another furniture chain owner has registered a raft of new businesses under the name Johnny’s Furniture, including retail locations in Bundall, Helensvale, Kawana and Virginia.
Daily Mail Australia has contacted Johnny’s Furniture for comment.