99-year-old Godfreys co-founder launches takeover bid

The struggling vacuum cleaner merchant is assessing a takeover bid by its 99-year-old co-founder.

Struggling vacuum cleaner merchant Godfreys is assessing the A$13 million ($13.6m) takeover bid by its 99-year-old co-founder.

The retailer has urged shareholders to take no action until a yet-to-be-appointed independent expert has determined whether the offer is fair and reasonable.

John Johnston, who first launched Godfreys in 1936 with Godfrey Cohen in Melbourne, has made an all-cash bid of 32 cents a share through his family-owned Arcade Finance.

The bid represents a 49 per cent premium for the stock, which on Monday was at an all-time low of 21 cents.

"The directors will carefully consider the proposal by Arcade as announced," Godfreys said in a statement to the ASX on Tuesday.

Since listing in 2014 at $2.75, Godfreys has suffered falling sales, multiple changes of senior management, and a sustained slide in share price to its current level.