Retail investor Gordon Brothers is set to lift Barbeques Galore back out of administration, operating the sunken outdoor furniture retailer as a going concern.

Some 500 jobs were put at risk when Barbeques Galore entered administration in mid-February. Philip Campbell-Wilson, Lisa Gibb and Matthew Byrnes of Grant Thornton were appointed voluntary administrators; Quentin Olde, Luke Pittorino and Liam Healey of Ankura were appointed as receivers and managers.

The business’ operations were maintained during receivership.

Five stores were closed during receivership in a bid to stabilise the business. A small number of redundancies were incurred, Barbeques Galore said.

The receivers said they received “strong interest” in the sales process, but they found that Gordon Brothers’ proposal was in the best interest of the company. 

This proposal will see Gordon Brothers restructure the group via a deed of company arrangement (DOCA) which will involve a $5 million payment to creditors, and discharging a portion of the retailer’s $13.5 million in debt.

“The proposal is still subject to the approval of creditors, however, the receivers are confident that with the support of suppliers, landlords, and employees, the iconic Australian business can continue as a going concern,” Quentin Olde said.

“After the restructuring, the business will be stronger and more stable, retaining around 500 jobs and allowing franchisees, the majority of landlords, and suppliers to keep trading with the company.” 

Quadrant Private Equity sold the Barbeques Galore business to Gordon Brothers in December. At the time, newly-appointed CEO David White and Gordon Brothers both spoke of the need for the famed retailer to transition into a new phase of growth.

“With the support of suppliers, staff, and landlords, the great Barbeques Galore team and I are confident that we can build on the fantastic Barbeques Galore brand and market-leading position to continue to provide Australians with the best choice of outdoor cooking products for many years to come,” White added.

Barbeques Galore said the DOCA remains subject to a number of conditions, including the support of its landlords and suppliers.