Deloitte yesterday confirmed that customers will not be receiving any Kleenmaid appliances even if they have already been paid for.
“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,” said joint administrator of Kleenmaid Group and Deloitte partner John Greig.
“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.
Greig said that the warehouse provider has now confirmed they are owed $2.1 million 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cost value of Kleenmaid owned appliance stock held by them is only $2.9 million which comprises some damaged and superseded stock.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 $27.6 million and $27 million respectively,” he said.
Greig acknowledged this would be very distressing to customers and again recommended they should immediately lodge their claim with the administrators if they have not already done so.
“Unfortunately at this stage we do not foresee that the available assets of the Kleenmaid Group will provide any return to unsecured creditors.”
Greig stated that an advertisement will appear from today 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.