Godfreys balance sheet restructuring completed

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Godfreys, Australia’s biggest vacuum and cleaning retailer, announces the completion of its consensual balance sheet restructuring.

Godfreys, Australia’s biggest vacuum and cleaning retailer, announces the completion of its consensual balance sheet restructuring.

Godfreys was established in 1931 and acquired by private equity interests in 2006.

The retailer has restructured its balance sheet to significantly de-lever, with direct obligation debt reduced from over A$210 million to only A$20 million.

The residual obligations have been converted into a shareholder loan or converted to equity in a “loan to own” process. The restructuring process was led by Nomura, the global investment bank, and advisory firm Wingate Group.  Blake Dawson acted as legal advisers.

“The significant reduction of debt levels will assist management and the new owners to refocus the business and materially enhance profitability,” said Tom Krulis, the newly appointed CEO of the restructured group and a veteran of the vacuum cleaning industry.

The consortium has been working with the stakeholders of Godfreys, including the management team, current owners and debt providers, for the past few months.

“The future prospects of Godfreys, through its many successful company-owned and franchised stores, are very positive and we believe the former entrepreneurial approach, which saw it thrive for many years, can be restored,” added Mr Krulis.

“Godfreys is a good example of a business with enormous potential that will benefit from a strong balance sheet, new ownership and management.”

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 9 January 2012