SYDNEY — One of Australia’s most recognizable retail brands has collapsed, leaving 500 jobs hanging in the balance and customers scrambling to understand the fate of their gift cards and orders.
Barbeques Galore, the nation’s largest specialist retailer of barbecue hardware and outdoor furniture, entered voluntary administration on Thursday afternoon. The collapse marks a significant blow to the Australian retail sector, following a summer trading period that failed to provide the necessary cash injection for the struggling business.
The company, which operates a network of 95 stores across the country, has been placed in the hands of receivers from global consulting firm Ankura. The immediate priority for the receivers is to stabilize the business while urgently seeking a buyer to restructure or sell the operation as a going concern.
While the 27 franchisee-owned stores remain unaffected by the administration, the future of the 68 company-owned stores—and the roughly 500 staff employed within them—is now uncertain.
The “Cash” Crisis: Why It Happened
The collapse comes less than three months after the business was acquired by US private equity firm Gordon Brothers in late 2025. At the time of the acquisition, hopes were high that the new owners, who specialize in restructuring and revitalizing distressed brands, could turn the retailer’s fortunes around.
However, the turnaround appears to have stalled before it could truly begin. Chief Executive David White, who was appointed to lead the “next evolution” of the brand, cited critical liquidity issues as the catalyst for the appointment of administrators.
“Management was excited to turn around the business and move to the next evolution of the brand,” White said in a statement released Thursday.
“Considerable progress has been made in recent months leading to significant improvements across the business and operations; however, ongoing liquidity challenges have led to the necessary restructuring of the business.”
Put simply, the business ran out of cash. Despite generating $172 million in revenue for the 2024 financial year—a figure consistent with the previous year—the cost of doing business has skyrocketed. The company posted a pre-tax loss of $16.1 million in FY2024, a sharp deterioration from the $4.7 million loss recorded in 2023.
Consumer Alert: Gift Cards Slashed
For customers, the immediate impact of the administration is a severe reduction in the value of gift cards. In a move standard for retail collapses but infuriating for consumers, the receivers have frozen the unconditional redemption of gift vouchers.
Effective immediately, anyone holding a Barbeques Galore gift card will be treated as an unsecured creditor for the full value of the card unless they agree to a “spend-to-redeem” policy.
The New Gift Card Rule:
To redeem a voucher, customers must spend $2 in cash (or card) for every $1 of voucher value they wish to use.
- Example: To use a $100 gift card, a customer must purchase goods totaling $300. They would pay $200 of their own money and use the $100 card to cover the balance.
This policy is designed to keep cash flowing into the business while it trades during the administration period. While legally permissible under the Corporations Act during administration, it frequently draws the ire of consumer advocacy groups and leaves loyal customers feeling short-changed.
Outstanding Orders:
There is better news for customers waiting on deliveries. The receivers have confirmed that items fully or partially paid for will be delivered. This assurance is critical for a retailer dealing in high-ticket items like outdoor kitchens and premium furniture, where deposits are common.
Staff in Limbo: Union Demands Guarantees
The 500 staff members employed at company-owned stores are facing a period of intense anxiety. The Shop, Distributive and Allied Employees Association (SDA), the union representing retail workers, has immediately called for guarantees regarding worker entitlements.
“The SDA is deeply concerned by the news that Barbeques Galore has entered voluntary administration,” an SDA spokesperson said on Thursday.
“Workers’ best interests must be put first, and all legal entitlements must be honoured in full. Retail workers are low paid and cannot afford to go without their pay and entitlements they’re owed.”
The union has pledged to support workers through the process, but the specter of previous retail collapses—where workers were often last in line for payouts—looms large. The priority for the receivers will be to pay secured creditors (such as banks and the private equity owners) before addressing unsecured creditors, a group that typically includes employees owed redundancy payouts.
Franchisees: Business as Usual?
A unique aspect of the Barbeques Galore network is its hybrid model. Of the 95 stores, 27 are owned and operated by franchisees. These small business owners are legally separate entities from the collapsing parent company.
The voluntary administration does not extend to these franchise stores. They remain open, solvent, and trading as normal. However, franchisees are not entirely insulated from the fallout. They rely on the head office for stock procurement, marketing support, and brand reputation. A prolonged administration or a failure to find a buyer could disrupt their supply chains and damage the brand equity they have invested in.
A Brief History of a BBQ Icon
Barbeques Galore is a heritage brand in the Australian retail landscape. Founded in Sydney in 1977, it rode the wave of the Australian suburban dream, capitalizing on the nation’s obsession with outdoor dining.
The company’s ambition soon outgrew the Australian market. It expanded aggressively into the United States, eventually listing on the Nasdaq on Wall Street. However, the US expansion proved to be its Achilles’ heel during the Global Financial Crisis. The US division was driven into bankruptcy in 2008, a casualty of the sub-prime mortgage collapse that decimated American consumer spending.
Following the US failure, the Australian arm was separated and continued to trade. In 2016, it was acquired by Sydney-based Quadrant Private Equity, which also owned Amart Furniture. Quadrant held the business for nearly a decade before offloading it to Gordon Brothers in late 2025 for a “nominal fee”—a transaction that, in hindsight, signaled the deep structural issues within the company.
The “Retail Apocalypse” of 2026
The collapse of Barbeques Galore is not an isolated event but a symptom of a broader malaise in the Australian retail sector in 2026.
Discretionary retailers are fighting a war on two fronts. On the supply side, the cost of goods, logistics, and wages has remained stubbornly high. On the demand side, Australian households are tightening their belts. High interest rates and cost-of-living pressures have curbed spending on “nice-to-have” items like new barbecues and outdoor settings.
Recent data from the Australian Securities and Investments Commission (ASIC) highlights a worrying trend, with retail insolvencies jumping significantly in the last quarter. Barbeques Galore joins a growing list of heritage brands that have struggled to adapt to a market where efficiency and liquidity are paramount.
What Happens Next?
The clock is now ticking for Barbeques Galore. Ankura, the appointed receivers, have a brief window to assess the financial health of the business and market it to potential buyers.
A first meeting of creditors has been scheduled for February 24. This meeting will provide the first clear picture of exactly how much money is owed, who it is owed to, and whether there is a realistic path out of administration.
For now, the stores remain open. The lights are on, but the future of this iconic Australian retailer is darker than ever.
Key Information for Customers:
- Gift Cards: Redeemable only if you spend $2 cash for every $1 voucher.
- Deliveries: Fully and part-paid items will be delivered.
- Franchise Stores: Trading as normal, unaffected by administration.
- Support: Contact the receivers at Ankura for creditor inquiries.
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