Kitchen Things went into receivership last week. Photo / Jason Dorday
Kitchen Things went into receivership last week. Photo / Jason Dorday
Receivers of premium kitchen and laundry appliance company Kitchen Things say products can start being released this week to customers who paid 100% of the purchase price.
Kitchen Things went into receivership last Wednesday after ongoing trading losses, with 12 stores nationwide being temporarily closed.
Dozens of customers reached outto the Herald over concerns about items they had paid thousands of dollars for but not yet received.
Others customers told the Herald they had items ready to be shipped, before being turned back.
“The stress on our family is huge,” another person said.
Stephen Keen of Grant Thornton provided an update to the Herald today, saying collections of some items can start this week.
“We have been working quickly to identify ways the companies in receivership can meet obligations owed to as many customers as possible,” Keen said.
“Our stocktakes have confirmed products that are in our possession can be released to customers who have paid 100% of the purchase price.
“This week, those customers will be given access to an online portal where they can select a time to collect it after we have validated their purchase – but they do need to be aware that the location may differ from the place of purchase.”
Keen said they required customers to collect or arrange collection of those goods. He said this would be stated in communications issued to those affected.
“Where a customer has part-paid the purchase price or paid a deposit for an item held by one of the companies in receivership, we are working to validate the position,” Keen said.
“When we have more information, a separate communication will be issued to the impacted customers in the coming days.
“If an item isn’t in stock, we are working with suppliers to establish the status of these orders. Customers who have either fully or partly paid for these items will receive an update from us next week.”
The unfinished kitchen of a Wellington family who are waiting on $16,000 worth of appliances from Kitchen Things.
Keen said funds would be returned to customers who paid a deposit for products on or after August 20 – the day the company went into receivership – and no longer wanted to complete the transaction.
“All customers can expect updates from us based on their specific situations along with a frequently-asked-question guide to help them through the process,” he said.
Grant Thornton said any customers impacted by the receivership can contact them at kitchenthings@nz.gt.com.
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.
The appointment of receivers also affects related entities including Applico Limited (the group’s distribution arm), Baumatic Appliances Limited and Jones Family Investments Limited.
Last week, receivers at Grant Thornton 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.
“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.
