Godfreys downward spiral
The AFR reported that Godfreys has warned of a serious cash squeeze in early July and the need for emergency financing. A new management team has been appointed following John Johnston’s increase of his stake in the business to 80%. As the new management takes over, an ever bleaker picture continues to emerge. Godfreys operates 200 stores in Australia and New Zealand. The new CEO expressed hope that the business can be repaired, but it looks to us like a monumental task.