In late January, the Australian-owned vacuum cleaner retailer entered voluntary administration, with PricewaterhouseCoopers appointed to oversee the New Zealand operation.
In a statement on Wednesday, it announced a lack of viable offers meant there would be a "phased closure of all stores" between now and May 31.
Godfreys Dunedin owner Ginnie Singh said while the closure came as a shock to staff, they were not too fazed by the future.
Dunedin was a franchise store, whereas the nearby Invercargill was not, so the brand’s closure was "not affecting [them] too much".
It would now have access to an updated range of products and broader advertising, as they had been previously restricted to certain brands under the Godfreys label.
"It’s not too much of a problem and in the future we’ll probably be even expanding — now that we are no longer under the banner we’re not sort of restricted.
"For us, it’s just the name on top of the store that changes ... we would just be trading as an independent store"
Mr Singh said the store had operated in Dunedin since 2012, and had three staff.
Some employees had been at the store for six years, with Mr Singh himself being there at its inception.
"I started with Godfreys when I was 14, so I’ve been with the company for almost 21 years now."
Mr Singh’s family also owned a franchise in Auckland, and he and other franchisees were in talks about forming their own co-operative.
They were still deciding on a new name for the Dunedin store and inquiring about more staff, but everything would become clearer in the coming weeks.
Mr Singh said their store had served hundred of thousands of customers over the last 12 years, and he was happy they would be sticking around to serve them.
