Australia’s largest barbecue and outdoor furniture retailer, Barbeques Galore, has entered voluntary administration, sending shockwaves through the retail industry. With around 500 jobs on the line, the company’s downfall has left many wondering about the future of the brand. The sudden collapse is tied to serious cash flow issues that have put the once-popular business on the brink of closure.
Financial Woes and Company Struggles
The news came on Thursday when Barbeques Galore appointed voluntary administrators, citing liquidity challenges as the main reason for its financial struggles. The company, which oversees 68 company-owned stores and 27 franchise locations across Australia, has been fighting to stay afloat for months. Despite recent efforts to turn the business around, including making progress on improving operations, the ongoing cash flow issues proved insurmountable.
For those holding gift cards, the news is particularly grim. Customers who had vouchers for the store are now facing significant losses. To redeem a $100 voucher, they’ll need to spend $200 at the store—an unfortunate hit to many who were hoping to use their cards, explains Yahoo Finance. In a move that has sparked frustration, the value of these gift cards has been slashed to one-third of their original value. It’s a tough break for customers who were hoping to make purchases in the lead-up to the holiday season.
The Impact on Workers and Customers
Approximately 500 employees are affected by the company’s collapse. Many workers, particularly those in low-wage retail positions, are left with uncertainty about their future. The SDA (Retail, Fast Food and Warehousing Union) has voiced concerns about these workers, calling for the company to honor all legal entitlements. Retail workers, as the union points out, are often in financially precarious situations and rely on their paychecks to make ends meet.
Barbeques Galore CEO David White expressed disappointment over the situation, stating that management had hoped for a better outcome. “Considerable progress had been made in recent months, but the ongoing liquidity challenges led to the necessary restructuring,” he said. Unfortunately, those challenges couldn’t be overcome.
What’s Next for Barbeques Galore?
Barbeques Galore was purchased by US private equity firm Gordon Brothers in late 2025, which added another layer of uncertainty. The company’s Australian operations, which saw $172 million in revenue in the 2024 financial year, posted a significant pre-tax loss of $16.1 million, a major increase from the previous year. Despite these losses, Barbeques Galore remains one of the most well-known retailers in the country, having expanded from its roots in Sydney in 1977.
The voluntary administration is set to restructure the company, with hopes of either selling it or bringing it back to profitability. The fate of the 500 jobs and the company itself depends on how the situation unfolds over the coming weeks. A creditors’ meeting is scheduled for February 24, where further decisions will be made.
The End of an Era?
As we await more details, the future of Barbeques Galore is uncertain. Will the brand manage to bounce back, or is this the end of a long era in Australian retail? The business has faced many ups and downs in its history, from its rise in the 1980s to its bankruptcy in the US after the 2008 financial crisis. With the right restructuring, Barbeques Galore could be on the road to recovery. But as of now, the company’s future remains up in the air, and it’s unclear how this will affect the broader retail landscape in Australia.
