Australian retailer Barbeques Galore has gone out of business after attempts to revive the struggling chain failed, leaving about 500 workers without jobs.
Founded in 1977 by Max Mason, the chain – selling BBQs and outdoor furniture – went into voluntary administration in February. A rescue deal was in the works but this week, the company said those efforts had met a dead end.
From next week, 62 company-owned stores will start closing down with "transitional arrangements" for 27 franchisee-owned stores. All staff will be paid their entitlements, the company said.
With its bright red logo, the chain's collapse has been described by analysts as a "tragic final chapter" for an "iconic" brand.
In a statement, the company said receivers had hoped to avoid winding up or liquidating the brand and proposed negotiating a deal with landlords and suppliers to "reestablish acceptable commercial trade terms moving forward".
But in recent weeks, those talks had not led to any deals, the company said, and the chain would be wound up, with assets to be sold from 16 June.
"Importantly, all employee entitlements and benefits… will be paid in full," the company said.
It added that gift vouchers can still be used in stores until the end of June but on the condition that the customer spends AU$2 for every $1 of the voucher.
For example, to redeem a $50 voucher, a customer must spend $100 themselves on a total purchase of $150.
Analyst Roger Montgomery said Australia's economic climate made it hard for a struggling business such as Barbeques Galore to be saved.
"This is a tragic final chapter for an iconic Australian retail brand," he told the Australian Broadcasting Corporation.
"If you can't sell barbecues to Aussies, who can you sell them to?" he asked.
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