Outlook for Kleenmaid customers is bleakDOWNLOAD
Joint Administrator of Kleenmaid Group and Deloitte Partner John Greig, provides an update for creditors of Kleenmaid.
“It has now become clear that the customers who have paid for new Kleenmaid appliances will not be receiving those goods. As previously advised, the Kleenmaid terms of conditions of sale for new appliances make it clear that ownership of the goods does not pass to customers until they have been paid for in full and have been delivered to the customer.”
“We have now confirmed that the new stock owned by Kleenmaid is minimal given that the stock is subject to a number of competing claims by various creditors,” he said.
“The warehouse provider has now confirmed they are owed $2.1m and have claimed a lien over all stock held by them. This means they will not release any stock to any party, including the Administrators or customers until arrangements have been made to pay their debt.
“The current cost value of Kleenmaid owned appliance stock held by them is only $2.9m which comprises some damaged and superseded stock. All other stock held by the warehouse provider is consignment stock which is owned by overseas suppliers or manufacturers and not by Kleenmaid.”
“Consequently, after satisfying the warehouse providers claim there is likely to be little if any stock available to satisfy the secured and unsecured customer claims, which are estimated at $27.6m and $27m respectively,” Mr Greig said.
Mr Greig again recommended that all those customers that find themselves in this very distressing position should immediately lodge their claim with the Administrators if they have not already done so.
Should these customers wish to be eligible to vote at the first creditors meeting tomorrow they should complete the proof of debt form (and proxy form if they cannot attend the meeting in person) and send it to the address as outlined in the First Circular to Creditors. If creditors have not received this circular a copy is available from the Deloitte website.
“Unfortunately at this stage we do not forsee that the available assets of the Kleenmaid Group will provide any return to unsecured creditors.”
Mr Greig will be reiterating this message at the meeting of creditors tomorrow in Brisbane.
Mr Greig stated that an advertisement will appear from tomorrow seeking expressions of interest to acquire the Kleenmaid business. He confirmed that some interest has been expressed to date in certain parts of the business.
On 9 and 15 April 2009 the Directors of Kleenmaid appointed Deloitte partners, John Greig, Richard Hughes and David Lombe, as Voluntary Administrators to take control of the group and investigate the affairs of the business.
Based on initial figures (subject to change) there is approximately $76m owed to creditors of the Kleenmaid Group. The breakdown is as follows:
Secured creditors (banks) = $28m
4,000 customer deposits = $27m
2,800 trade creditors and suppliers = $16m
Landlords and warehouse operators = $2m
Employees = $3m
For more information, please read the first circular to creditors.
For further information about the voluntary administration process, please refer to the Australian Securities and Invesments Commission website.
All creditors and customers with queries should contact the Administrators by email: email@example.com