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14 April 2009: Kleenmaid Group (in administration) – more information for consumers

Contact:  Johnny Sollitt-Davis (media enquiries only)
Corporate Affairs & Communications

Today at a media conference held at Deloitte’s Brisbane office Kleenmaid Group Joint Administrator John Greig said:

“Having been appointed late on Thursday 9 April before the Easter long weekend, we are still very much in the information gathering stage.”

“We are asking all creditors and customers to contact us via email ( Kleenmaid@deloitte.com.au) detailing their particular circumstances so we can respond to them on a case by case basis.”

“As so many consumers and creditors are affected we are liaising with key stakeholders such as the Office of Fair Trading and Australian Securities & Investment Commission to ensure they are kept fully up to date.”

“Unfortunately it is too early to say whether customers who have paid in full are likely to receive the items they have purchased.”

“Customers who have paid deposits for goods are now effectively unsecured creditors and will receive a letter explaining the next steps of the administration process shortly.”

Based on initial figures (these are subject to change) there is around $73m owed to creditors.

The breakdown is as follows:
Secured creditors = $27m
Customer deposits = $27m
Trade and suppliers = $16m
Landlords and warehouse operators = $2m

Deloitte will be holding a creditors meeting in Brisbane in the week commencing 20 April to provide an update to creditors and appoint a committee to assist the Joint Administrators. The details of the meeting will be posted on kleenmaid@deloitte.com.au.

Further background to the Administration

On 9 April at 4pm the Directors of the Kleenmaid Group (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.

Mr John Greig said that the main reason for the appointment by the Directors was that the global financial crisis had severely impacted sales and margins, and all attempts by the Directors to obtain new financial support for the business have met with no success in the present economic circumstances.

The kitchen and laundry appliance group had a turnover of $90 million in the year to June 2008. Headquartered in Maroochydore, Queensland, the business has around 2,800 trade creditors who are owed approximately $12 million.

The Kleenmaid Group was founded in 1985 and is one of the few distributors to sell its appliance products direct to the public. Kleenmaid currently has 20 retail outlets located in QLD, NSW, VIC, SA and WA, of which 15 are franchised and five are wholly owned by the company. In addition, there is a warehouse facility in which stocks of finished appliances are kept pending sale, a spare parts business, as well as 30 franchisees providing in-home service throughout Australia.

The process of voluntary administration is designed to quickly explore the options for the company to ensure that creditors get the best possible return. The Joint Administrators will be writing to all creditors shortly to provide notice of the date of the first meeting of creditors. The first creditors’ meeting is normally held within eight business days of the appointment of a Voluntary Administrator.

The recommendations of the Joint Administrators with respect to the future of the group will be provided at the second creditors meeting. The meeting is typically held within a 25 business day convening period.

NB: For further information about the voluntary administration process, please refer to: http://www.asic.gov.au/insolvencyinfosheets

All creditors and customers should email:
kleenmaid@deloitte.com.au

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