Furniture chain in administration with out-of-pocket customers angry

Hundreds of unhappy customers have been left without both their money and their orders after a national furniture chain announced it had gone into administration. 

Johnny’s Furniture, which had 15 stores scattered across Queensland, New South Wales and Victoria, entered voluntary administration on Tuesday.

Many customers have been left in the lurch with no guarantee they will get their money back. The news caused some customers to turn up at stores to collect their orders, leading to a dispute at one Gold Coast outlet.

Administrator Shumit Banerjee of Westburn Advisory issued a statement on the company’s collapse which was seen in the window of some stores. 

‘Whilst my appointment is in its infancy, my preliminary investigations indicate that the company had a significant decline in revenue during the 2024 financial year, which likely contributed to the Director’s decision to appointment me as voluntary administrator,’ it read. 

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Creditors of the company included lenders, staff, customers, the ATO, related parties and other government revenue offices.

Those turning up to stores to demand furniture or a refund were instead handed a letter confirming an urgent assessment of the business was underway.

‘The Director of the Company has indicated his desire to honour store credits and lay-bys, and we are currently working with the Director regarding same,’ the letter read. 

‘I am currently continuing to trade the business in a limited capacity.

‘We sympathise with customers with unfulfilled orders and ask for patience while we undertake our urgent assessment,’ it continued.

‘We anticipate a further update will be communicated to customers within the next 2-3 weeks.’

The letter added all available options were being considered, including sale of the business as a going concern or recapitalisation through a Deed of Company Arrangement.

Customers took to social media to share their gripes, with many posting the same experiences of lengthy delays and faulty products.

‘I am currently going through the hell of trying to get a refund from them,’ one shared on Reddit.  

‘Bought a lounge suite in November that was to be delivered in January. February rolls around and I have to call them.’

They added: ‘It’s been delayed. Same thing month after month.’

‘They don’t call me to tell me, I have to call them when the delivery doesn’t arrive.’

The customers claims they were told refunds couldn’t be processed in store and were put in touch with Johnny’s customer service team.

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‘Two weeks later they say the customer service team can’t do refunds, head office can.’

The infuriated customer said they are still waiting as of May 21 and have started the process with their bank to take the money back.

Another said they had ordered a lounge in October 2023 and are still waiting for it to be delivered seven months later.  

‘Was originally told a 3 month wait, latest eta end of June,’ they shared.

‘I recently went into the Bundall store, sat on the display couch that I had ordered, said that I like it and asked how long the wait time is for one of these.’

They continued: ‘[Staff] obviously didn’t recognise me as it has been so long since I placed an order for the exact same lounge.

‘The staff member proceeded to tell me a 3 month wait – I handed her my receipt from 7 months ago and asked her to look into this one for me.’

‘She apologised, handed the receipt back to me and said she doesn’t know what to do.’

A Queensland Police spokesperson confirmed it was called to a dispute at a store in Bundall on Saturday morning but did not attend. 

One customer, there to collect a table, described the situation as ‘crazy’.

‘There were people everywhere and security was bought in as people were coming in asking questions,’ they told the Gold Coast Bulletin.

‘People are hurt financially. It is a mess.’

The newspaper reported another furniture chain owner has registered a swag of new companies under the Johnny’s Furniture name, including locations for stores at Bundall, Helensvale, Kawana and Virginia.

Daily Mail Australia has contacted Johnny’s Furniture for comment.