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Three-store Godfrey DIY goes into liquidation

Published: 21 January 2013
Norwich-based Godfrey DIY has pulled the plug on its business, calling in liquidators just days after its managing director told diyweek.net of plans to secure its future.
Three-store Godfrey DIY goes into liquidation
Earlier this month, Barry Godfrey said he would be scaling back operations at the Norwich store by replacing the current 15,000sq ft DIY and furniture operation with a 2,000sq ft furniture shop.

The move would have meant the possible loss of 20 jobs out of a total of 26 at the store, and redundancies were also expected at Godfrey DIY's two other sites, in Diss and Stowmarket, which employ 14 and 11 people respectively.

"We want to be part of the future of the DIY market and we've got to do everything we can do to preserve that," Mr Godfrey told diyweek.net.

However, the company, which last year generated turnover of £5m, has now instructed insolvency specialist McTear Williams & Wood to begin the process of liquidation, with a creditors' meeting to be held later this month - but there are still hopes that two of its branches may survive.

Prospective liquidator Andrew McTear said that since the beginning of the redundancy consultation in November sales had continued to decline and cash flow had deteriorated to the point where the company could not continue to trade.

Sales had been on a downward trajectory since the 2008 housing crisis, and despite considerable cost savings, poor sales in 2012 caused by economic uncertainty, restricted mortgage lending for first-time buyers and poor weather had continued to affect trading.

"The company will continue to trade as normal until the creditors' meeting on January 30," said Mr McTear. "After then we hope to be able to sell the Diss and Stowmarket branches as going concerns."

Mr Godfrey said: "After 30 years of successful trading this is a sad day for all of us. On behalf of my family I would just like to thank all our customers and staff for their loyalty and commitment over the years.

"Obviously we're not the only retailer to have encountered difficulties since Christmas, and probably will not be the last."

Comments

Published prior to March 2014
By Phil Duncan
It is a sad day, the demise of a good Independent, with a family that cared about staff, customers and suppliers . Bill and latterly Barry invested heavily, developing new formats and always embracing new ideas. I hope something can be salvaged, for the good of all.
I wish the family well in these difficult times

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