This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

Deloitte secures ASIC funding for Kleenmaid investigation


DOWNLOAD  

The Australian Securities and Investments Commission (ASIC) has approved funding for an investigation into the collapse of Australian white goods business Kleenmaid.

Joint Liquidator and Deloitte Partner, Richard Hughes said: “This funding approval marks the beginning of the next crucial stage of the liquidation process. The investigation will focus on insolvent trading.”

Legal action

“We will provide a detailed report to ASIC and then it is their decision whether or not they will bring a criminal case against the directors.”

“At the same time the Liquidators will use the findings of the investigation as the basis for any civil action that we may bring to recoup monies on behalf of creditors.”

“We will be providing an update on the investigation in the next few months as it is a very complex matter that will take some time to fully investigate. At this stage I would ask the creditors and consumers who have lost money to be patient while we continue our enquiries.”

Responding to creditor enquiries about the offence of insolvent trading, Mr Hughes highlighted the following from the ASIC website which states that:

“If dishonesty is found to be a factor in insolvent trading, a director may also be subject to criminal charges (which can lead to a fine of up to $220,000 or imprisonment for up to five years, or both). Being found guilty of the criminal offence of insolvent trading will also lead to a director’s disqualification.”

For more information on the ASIC Assetless Administration Fund, please refer to the website.

Kleenmaid timeline

9 April 2009 – Voluntary Administrators John Greig, Richard Hughes and David Lombe appointed to Kleenmaid Group. All 150 staff terminated upon appointment and five Kleenmaid owned shops are closed, some franchisees continue to sell floor stock but no new orders are made from suppliers by the Administrators.

20 April 2009 – Joint Administrator John Greig confirms that based on Kleenmaid terms of conditions, customers who have paid for new Kleenmaid appliances will not be receiving any goods as ownership of the goods does not pass to customers until they have been paid for in full and have been delivered to the customer.

23 April 2009 – Creditors meeting held in Brisbane where Mr Greig confirms that the available assets of the Kleenmaid Group will not provide any return to unsecured creditors.

25 May 2009 – 2nd creditors meeting held in Brisbane and creditors agreed to wind up and liquidate the Kleenmaid Group.

18 June 2009 – DB Schenker releases lien on Kleenmaid stock and auction begins through www.Graysonline.com

24 June 2009 – EDIS Pty Ltd sold to Stokes and Kleenmaid Customer Solutions sold to Aussie Whitegoods Rescue.

31 July 2009 – Liquidation of remaining Kleenmaid stock begins through www.Graysonline.com.

7 August 2009 - Fixed and floating charge previously held by GE Commercial Corporation Australia over Orchard KM Pty Limited assigned to DGH Holdings Pty Ltd.

31 August 2009 – Joint Liquidators write to DGH and Compass demanding they stop using the customer database and the Kleenmaid brand.

Last Updated: 

Contacts

Name:
Johnny Sollitt-Davis
Company:
Deloitte Australia
Job Title:
Corporate Affairs & Communications
Phone:
Tel: +61 2 9322 7256, Mobile: 0431 134 850
Email
jsollittdavis@deloitte.com.au

Share

 

 

Follow us



 

Talk to us