Breaking: Barbeques Galore to shut, hundreds of workers facing redundancy

Barbeques Galore had about 90 stores and 500 staff when it entered administration in February. (ABC News)

Barbeques Galore will shut down in coming weeks after failing to successfully negotiate a rescue deal.

The Australian retail chain began in the 1970s, and now has 89 stores and about 500 employees.

The future of 27 franchise stores and employees remains uncertain, while 62 company-owned stores will wind up, with staff facing redundancy.

Barbeques Galore will wind up in the coming weeks, with hundreds of workers facing redundancy.

The retail chain entered into voluntary administration in February, and today announced it was unable to find a buyer or complete a recapitalisation.

It will shut its 62 company-owned stores in the coming weeks and work through "transitional arrangements" with 27 stores owned by franchises.

The receivers said staff will continue to be employed "during the receivership process" or made redundant as the winding up occurs.

Barbeques Galore had about 500 staff as of its collapse in February.

"All employees will be paid their full accrued redundancies and termination payments in the ordinary course of separation," the receivers said in a statement.

Customers who have a Barbeques Galore gift card will be able to use it during the wind-up process, through to June 30.

However, there are strings attached. For every $1 redeemed on a gift card, the shopper must spend $2, arrangements first announced in February.

For example, to use a $50 gift card, a customer must make a total purchase of at least $150, with $100 paid on top of the gift card.

"Unredeemed gift cards will be treated as unsecured creditors after the 30 June deadline, so customers are encouraged to use their gift cards while they can do so," the statement read.

Barbeques Galore will shut its company-owned stores in coming weeks. (Supplied)

The administrators and receivers had attempted a rescue recapitalisation deal with major creditor Gordon Brothers to try and keep the chain from having to wind up.

It was announced in mid-May and was conditional on the outcome of negotiations with parties including landlords and suppliers.

However, today they said in recent weeks, negotiations were not able to reach a position where the deal could be implemented.

Barbeques Galore has been in operation since the 1970s after being founded by Max Mason.