Godfreys Group - Case Update

Craig Crosbie, Robert Ditrich and Daniel Walley of PwC, the joint administrators of vacuum cleaner retail chain Godfreys Group, have obtained a series of directions and declarations to facilitate their trading of the business following their appointment on 30 January.

The court declared that the joint administrators are acting in the interests of the creditors in: (1) continuing to conduct the business and seeking to achieve a sale; (2) entering into a $4 million funding deed with secured creditor 1918 Finance (owed approximately $65 million) to cover the costs of trading and the administrators’ remuneration; and (3) funding and supplying stock to a wholly-owned New Zealand subsidiary.

The court found that it was unlikely that more attractive funding could be obtained in the circumstances and time required. The court also limited the joint administrators’ personal liability with respect to their trading of the business, and extended the convening period for the second meeting of creditors to 28 May.

Read the decision here.