Major retailer Johnny’s Furniture has gone into administration due to a “significant decline in revenue”. The company, which had 15 stores at its peak, has now been reduced to just eight locations across Australia. Company directors are currently scrambling to fill orders amidst their financial woes.
Administrator Shumit Banerjee of Westburn Advisory stated, “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.”
Banerjee also mentioned that they are exploring all available options, including the sale of the business as a going concern or recapitalization. The director has expressed a desire to honor store credits and unfulfilled orders, and efforts are being made to assess the feasibility of this.
Stores affected by the administration are located in Birtinya, Virginia, Helensvale, Bundall, Marsden Park, Parramatta, Campbelltown, and South Morang. The business, which originated in Melbourne, focused on providing affordable and stylish furniture options.
A “stock liquidation” sale is currently being advertised on the company’s website. Customers with unfulfilled orders are being asked for patience as the administrator continues to trade the business in a limited capacity. Updates on the situation are expected to be communicated to customers within the next 2-3 weeks.