Kitchen Things in receivership: Ex-employee on turning up to work to find they no longer had a job

A former Kitchen Things employee says, looking back, they believe there were signs the writing was on the wall for the company that is now in receivership.

The employee, who the Herald agreed to keep anonymous, said Kitchen Things had been through two restructures in the past 15 months.

The staffer turned up for work on the morning of August 20 to news they no longer had a job.

“Once I parked up I noticed a security guard wearing a hi-vis vest standing in front of the sliding door to the warehouse, which was strange,” they said.

“As I approached, he asked me for my name which was on a list that he had. After he marked it off [one of the receivers] came up to me and told me that Kitchen Things had gone into receivership and that there was a group meeting in 10 minutes inside the showroom.”

The Kitchen Things employee said they’ve had no communication from the company since that day and have only had one email from receivers at Grant Thornton regarding the first creditors’ meeting.

The worker said they are now waiting on money owed to them, including final wages and annual leave.

“It has put quite a strain on my partner and I financially. We have been having to ask for help from family as we are struggling to afford our bills,” they said.

“Because of how quickly the receivership happened I was unable to access my payslips as they were all saved on an employee portal, so I don’t even know exactly how much I am owed.

“I have applied to see what temporary assistance Work and Income can offer me, but it has been a struggle.”

The Herald has contacted Grant Thornton for comment.

Twelve Kitchen Things stores nationwide have been temporarily closed as a result of the receivership, while an independent store in Hamilton remains open.

Related entities, including Applico (the group’s distribution arm), Baumatic Appliances and Jones Family Investments were also put in receivership.

The receivers said the group faced sustained pressure from weaker consumer demand and increased competition on pricing over the past two years, while 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,” said Grant Thornton’s Stephen Keen.

Keen said key staff had been retained to manage costs and reopen stores.

Earlier this week, Grant Thornton said it could start releasing appliances in its possession to customers who had paid 100% of the purchase price.

Dozens of customers reached out to the Herald in the week after Kitchen Things went into receivership over concerns about items they had paid thousands of dollars for but not yet received.

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.