500 workers impacted as Barbeques Galore heads for closure

Barbeques Galore has run out of road. The Australian retailer, a fixture of backyard gatherings for nearly 50 years, will shut down after efforts to revive the struggling business failed to secure a path forward., according to various media reports.

The company entered voluntary administration in February and had been pursuing a rescue deal. But after weeks of negotiations, administrators were unable to reach agreements that would allow the chain to continue trading.

Closures ahead

The collapse will see 62 company-owned stores begin closing from next week, while arrangements are being made for 27 franchised outlets.

Around 500 employees are expected to be affected as the business winds up operations.

Assets will be offered for sale from 16 June.

Despite the closure, the company sought to reassure workers, saying: "Importantly, all employee entitlements and benefits... will be paid in full."

What went wrong?

Receivers had hoped to avoid winding up the business and worked on a proposal that involved renegotiating terms with landlords and suppliers.

In a statement, the company said it had sought to "reestablish acceptable commercial trade terms moving forward".

Those talks, however, failed to deliver a breakthrough.

The outcome brings an abrupt end to a brand that once held a prominent place in Australia's outdoor lifestyle market.

Customers face restrictions

Gift vouchers will remain valid until the end of June, though customers will need to meet new spending requirements.

Under the arrangement, shoppers must spend AU$2 of their own money for every AU$1 redeemed through a voucher.

A customer using a AU$50 gift card, for example, must spend an additional AU$100, bringing the total purchase value to AU$150.

End of an icon

Founded by Max Mason in 1977, Barbeques Galore grew into one of Australia's most recognisable specialty retailers, known for selling barbecues, outdoor furniture and entertaining essentials.

Its bright red stores became a familiar sight across the country.

Retail analyst Roger Montgomery said the brand's demise reflected the pressures facing retailers in a difficult economic environment.

"This is a tragic final chapter for an iconic Australian retail brand," he told the Australian Broadcasting Corporation.

He added: "If you can't sell barbecues to Aussies, who can you sell them to?"

For many Australians, the closure is more than the loss of another retailer. It marks the disappearance of a brand long associated with the country's love of outdoor living.