Major retailer Johnny’s Furniture has gone into administration due to a “significant decline in revenue”.
The company had 15 stores in Australia at the height of its more 10-plus years in operation. That has been reduced to eight — four stores in Queensland, three in New South Wales and one in Victoria.
Company directors are scrambling to fill orders amid their financial woes.
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“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 place the company into voluntary administration,” administrator Shumit Banerjee, of Westburn Advisory, said in a statement.
“Westburn Advisory is currently conducting an urgent assessment of the business and considering all available options, including sale of the business as a going concern, or recapitalisation.
“The director of the company has indicated his desire to honour store credits and unfulfilled orders and we are currently working with the director to assess whether this is achievable.
“I am currently continuing to trade the business in a limited capacity.
“We sympathise with customers with unfulfilled orders and ask for patience whilst we undertake our urgent assessment.
“We anticipate a further update will be communicated to customers within the next 2-3 weeks.”
Stores are located in at Birtinya on the Sunshine Coast, Virginia in Brisbane, Helensvale and Bundall on the Gold Coast, Marsden Park, Parramatta and Campbelltown in Sydney and South Morang in Melbourne.
The business started in Melbourne.
Its website said it focused on providing “great styles (that) are affordable as well as stylish.
A “stock liquidation” sale is being advertised on the company’s website.