Kitchen Things went into receivership last week. Photo / Jason Dorday
A Kitchen Things customer is questioning why he was allowed to make a $5500 deposit to the company when it was already in receivership.
Kitchen Things was placed into receivership last week, closing 12 stores, after sustaining ongoing trading losses.
The man, who the Herald agreed to keep anonymous, said he wasn’t aware of the company’s receivership on Wednesday morning last week before making the payment that afternoon.
“ASB Bank did not flag this and still allowed payments to Kitchen Things well into the afternoon,” the man said.
“We were unaware of the [receivership] notification and paid deposits of $5500.”
This is despite ASB, which holds General Security Deeds over Kitchen Things, appointing receivers to the company.
“ASB could be more proactive,” the man said.
He said ASB told him they were unable to stop payments to Kitchen Things.
In response, an ASB spokesperson told the Herald: “We understand this will be a challenging time for all affected by this receivership.
“Kitchen Things and its accounts are under the control of receivers [at Grant Thornton]… and we are not able to prevent payments being made to Kitchen Things, nor would we be privy to what any payments are for.
“We understand the receivers are communicating directly with affected customers on their next steps.”
The man said he also questioned why Grant Thornton still allowed receipt of deposit payments after their announcement.
The Herald has contacted receivers at Grant Thornton for comment.
Other customers have vented frustration over not receiving goods from Kitchen Things that have already been paid for.
One woman told the Herald she purchased a fridge freezer on August 15 from Kitchen Things’ Trade Me shop and paid in full, including $200 for the courier.
“We spoke to Kitchen Things that day, and no mention was made of receivership.”
She said on the following Monday they received an email from Fliway Couriers with a consignment number and a tracking number with information that it had been picked up from the warehouse.
On Wednesday at 7.50am they received a text message saying that the fridge was on its way plus an email to the same effect, the woman said.
“When it didn’t arrive later that morning, we rang the courier, who informed us that he had been on his way but was told to turn around and return to the depot by the CEO of Fliway.
“We were told that Fliway would be retaining the fridge until further notice.
“The fridge had already left Kitchen Things and been paid for before the receivership announcement.”
A Wellington woman said she was also waiting on a Trade Me purchase from Kitchen Things to be delivered by Fliway.
“When I called Fliway to ask about the delivery, they told me it was because the seller was in receivership and that they were told not to deliver anything from Kitchen Things.”
Fliway Couriers and Grant Thornton have both been approached for comment.
Russell Moore, Stephen Keen and Adele Hicks of Grant Thornton New Zealand were appointed receivers of Kitchen Things and its related entities, including Applico Limited (the group’s distribution arm), Baumatic Appliances Limited and Jones Family Investments Limited.
Last week, receivers said the group faced sustained pressure from weaker consumer demand and increased competition on pricing over the past two years.
Efforts to restructure and reduce costs had not offset declining sales and margins.
“We have temporarily closed [12] stores while we assess stock and establish next steps for the group,” Keen said in a statement.
“Our priority is to identify buyers for the business and/or assets of the group, ideally on a going concern basis.”
Cameron Smith is an Auckland-based business reporter. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.