In the matter of Barbeques Galore Pty Ltd (admins apptd) (recs and mgrs. apptd)

JUDGMENT- ex tempore (Revised 11 March 2026)

Nature of the application and evidence

1. By Originating Process filed on 6 March 2026,Mr Campbell-Wilson, Ms Gibb and Mr Byrnes as joint and several administrators of Barbeques Galore Pty Ltd (admins apptd) (recs and mgrs apptd) apply for orders under ss 439A(6) and 447A of the Corporations Act 2001 (Cth) that extend the convening period in the voluntary administrations of numerous companies within the Barbeques Galore group of companies ("BBQs Galore companies"). The voluntary administrators also seek ancillary orders, including as to notification of creditors and as to reserving the ability to conduct an earlier meeting of creditors if they are in a position to do so.

2. The application, although it is directed to a group of companies of a substantial scale, is relatively straightforward in its character. The voluntary administrators read the affidavit dated 6 March 2026 of Ms Gibb, who refers to the appointment of the voluntary administrators at the same time that the BBQ’s Galore companies were placed in receivership. She addresses the business of the companies, and notes that there are several active trading entities and several dormant and non-trading entities; and refers to their financing arrangements with a secured lender, which has now appointed the relevant receivers.

3. Ms Gibb outlines the steps which have been taken since the voluntary administration commenced, which are consistent with those which one would expect to be taken in a large and complex voluntary administration. She refers to the sale process which has been commenced by the receivers in respect of the business and assets of the BBQs Galore companies, which involves, inter alia, a public advertisement of the sale; the issue of documents including an information memorandum to potential acquirers; and the creation of a data room accessible by acquirers subject to non-disclosure agreements.

4. Ms Gibb also addresses the position in respect of creditors of the BBQs Galore companies, which are very numerous in respect of unsecured creditors and less numerous in respect of secured creditors, although significant amounts are owed to both unsecured and secured creditors. She addresses the position of the employees and notes that the receivers are presently maintaining employment of employees while the sale process continues. She also addresses the position in respect of franchisees of the group and notes that dealings with the franchisees continue on an ordinary course basis; and that of lessors where the receivers are continuing to pay rent for relevant premises during the sale process.

5. Ms Gibb also refers to the first meeting of creditors where there was brief reference to the possibility that this application would be brought and to the matters which support the application for extension of the convening period. Ms Gibb, unsurprisingly, expresses the voluntary administrators' opinion that the best return to creditors is likely to be derived from a sale of the business of the BBQs Galore companies as a going concern or a recapitalisation in the manner that is presently being sought through the sale process conducted by the receivers. She also notes the receivers' advice that a comprehensive sale process is necessary in order to maximise the likely proceeds of the sale, which seems obvious enough. She notes the interests of creditors in extending the convening period, in order to maximise the benefit of the sale process and for several other reasons. These include, importantly, the fact that it would be unlikely to be possible for the voluntary administrators to provide meaningful information to creditors at a second meeting of creditors which was held before the sale process was concluded, or at least well advanced, because any distribution to unsecured creditors will likely depend upon whether the amounts obtained in a sale are sufficient to meet the claims of secured creditors and, possibly, priority employee creditors as events develop.

6. Ms Gibb also rightly recognises that the flexibility available through a voluntary administration process, and the ability to sell the business as a going concern, will ordinarily maximise the proceeds of the sale. She explains why an extension of the convening period for some three months is sought, reflecting the receivers' estimate of the time necessary to conclude the sale process. Given the scale and complexity of the business, the time estimated for the sale is unlikely to overstate the time that will ultimately be required. Ms Gibb also explains what is to be done by the voluntary administrators during the extended period, which includes collaborating with the receivers in respect of the sale process.

7. Ms Gibb addresses the effect of the proposed extension of the convening period on creditors, which is here limited. So far as lessors and employees are concerned, they are each receiving continued payments under the receivership. While the lessors will be subject to the continuing moratorium, it is likely in their interests, as Ms Gibb recognises, to continue to receive those payments, and to maximise the prospect that a purchaser of the business will continue leases of existing properties. So far as the employees are concerned, they are likely to prefer the receipt of their wages on an ongoing basis and the opportunity to obtain employment with a purchasing entity, to the loss of their employment and the ability to claim against the Fair Entitlements Guarantee scheme.

8. So far as unsecured creditors are concerned, their interests are likely to be served by maximising the sale proceeds of the business or a recapitalisation, so far as that maximises the prospect that secured creditors may be paid out and an amount may be available for distribution to unsecured creditors, including by way of a potential deed of company arrangement. Those conclusions are consistent with the fact that, as I will note below, notice has been given to relevant categories of creditors of this application, and none have appeared to oppose the relief that is now sought.

9. The voluntary administrators also read the affidavit dated 10 March 2026 of Mr Towhidi, a solicitor acting for them, who refers to the steps which have been taken to give notice of the application to interested parties.

Applicable principles and determination

10. Mr Krochmalik, who appears for the voluntary administrators, addresses the applicable principles, which are well established, including in respect of voluntary administration of relatively complex entities. I bear in mind, of course, the general principle that a voluntary administration should be relatively speedy and summary, but it has long been recognised, at least since Mann v Abruzzi Sports Club Ltd (1994) 12 ACSR 611, that that principle should be balanced against the desirability of sensible and constructive actions to maximise the return to creditors. Mr Krochmalik draws attention to the detailed review of the relevant principles in Strawbridge, in the matter of Virgin Australia Holdings Ltd (admins apptd) (No 2) (2020) 144 ACSR 347; [2020] FCA 717, and I have regard to the observations of Middleton J in that case at [65]ff without repeating them. Mr Krochmalik also rightly draws attention to my decision in Re Mosaic Brands Ltd (admins apptd) (recs and mgrs apptd) [2024] NSWSC 1439, which dealt with a large retail business, where an extension of a convening period was sought and granted in order to assist the voluntary administrators and receivers in completing a sale process. I there noted, and it seems to also be the case here, that there can be little real doubt that an extension of the convening period would be granted in a case where that is necessary in order to allow an orderly sale process of companies within a relatively substantial retail group, and maximise the proceeds of sale from that process.

11. Here, Mr Krochmalik points to the complexity of the operations of the BBQ Galore companies and the receivers' estimate of the time likely for the sale process to be completed as supporting the extension of time that is sought. He points to the advantages to creditors of a restructuring of the business or a sale of the business in the manner that is contemplated by the sale process and to the lack of prejudice to employees, creditors or other stakeholders, referrable to the matters which I have noted above. I am satisfied that this is a proper case for the extension of the convening period, both to facilitate the sale process conducted by the receivers and seek to maximise the proceeds that may be achieved by that process; and because the voluntary administrators likely could not, as matters stand, provide useful information to creditors until a sale process is completed.

12. For these reasons, I make orders in accordance with the short minutes of order initialled by me and placed in the file. I note that those include an order that the exhibits be returned.

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