Struggling vacuum cleaner merchant Godfreys is assessing the $13 million 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.

Fierce competition and the failure to quickly spot the trend toward stick cleaners also contributed to declining sales.

Mr Johnston already owns 28 per cent of Godfreys. Photo: Ernst & Young

Godfreys would be removed from the Australian Securities Exchange and returned to private ownership if Mr Johnston is successful with the bid, which was launched after the close of trading on Monday.

Mr Johnson already owns 28 per cent of Godfreys.

It is understood a successful takeover is not expected to result in closures of any of the 200-plus franchised and company-owned stores in the Godfrey’s network, or job losses among its 400-strong workforce.