Kitchen Things tipped into receivership, 12 stores closed

Nationwide premium kitchen and laundry appliance company Kitchen Things has gone into receivership after sustaining ongoing trading losses.

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.

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 [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.”

Keen said key staff have been retained to manage costs and re-open stores.

“We are calling for urgent expressions of interest from parties interested in acquiring all or part of the group.”

Kitchen Things in Morrow St, Newmarket has gone into receivership. Photo / Jason Dorday

The appointment affects related entities including Applico Limited (the group’s distribution arm), Baumatic Appliances Limited and Jones Family Investments Limited.

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.

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.