Customers of premium kitchen and laundry appliance store Kitchen Things are stressed and disappointed after being left in the lurch about their orders since the business went into receivership.
One customer told the Herald he was nearly $4000 out of pocket, and another said they had paid $5000 as a 50% deposit for several appliances.
“This is extremely worrying,” a customer said.
“Having saved for these appliances for our new home, we are really worried about the loss, especially as we are about to retire and settle down, and now, not knowing if we are getting our money back or if we will even get appliances is very stressful.”
Kitchen Things has 12 stores in New Zealand, which have been temporarily closed.
Russell Moore, Stephen Keen and Adele Hicks of Grant Thornton New Zealand have been appointed receivers.
Keen told the Herald affected customers should contact the receivers’ team at kitchenthings@nz.gt.com.
They will work through what orders can be fulfilled and what could be refunded, if any; however, Keen was unable to tell the Herald what affected customers should expect.
Customer Karl Hawthorne, of Albany, Auckland, is among four people who have told the Herald about his concern and disappointment with what appears to be a sunk cost.
“You can’t really hold it against Kitchen Things. A lot of businesses are going out of business. It makes me think whether I’m going to pay a deposit on anything at all ever again,” Hawthorne said.
His deposit was for a Smeg gas hob and electric oven, a dishwasher and a rangehood.
“I’ve just come back [from the shop]. Someone answered the door and there’s a sign up with an email address. I asked him if there was a possibility that I could pay the rest of this off and still get the delivery, or should I be looking at a refund. He couldn’t say, but he said his guess was the latter.
“And we still need a kitchen. We’re going to have to pay that again.”
The receivers said the group has faced sustained pressure from weaker consumer demand and increased competition on pricing over the past two years.
Efforts to restructure and reduce costs have not been sufficient to offset declining sales and margins.
The directors determined the group could no longer continue trading and asked ASB – which holds General Security Deeds – to appoint receivers.
“We have temporarily closed all 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.”
Keen said key staff have been retained to manage costs and reopen stores.
“We are calling for urgent expressions of interest from parties interested in acquiring all or part of the group.”
The appointment affects related entities including Applico Ltd (the group’s distribution arm), Baumatic Appliances Ltd and Jones Family Investments Ltd.
Kitchen Things was established in 1986 and sells leading international brands including Smeg, Asko, Miele, Bosch, Samsung and LG.
It was founded by Mark Jones, originally under the name Kitchen ‘N’ Things.
While 12 stores across the country will be closed, one Kitchen Things store in Hamilton will remain open.
That business is run by a separate franchise entity and is not subject to the receivership and administration.
Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.
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.
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