Kleenmaid

From Wikipedia, the free encyclopedia
Jump to: navigation, search

Kleenmaid is an Australian owned domestic appliance brand. Kleenmaid appliances have a reputation for quality and reliability[citation needed]. The brand was originally established in 1984 and traded until 2009 when the company failed owing significant debts, after which the company was liquidated. [1] The rights to the name were acquired by the private equity group Compass Capital Partners in the same year. [2] They then went on to relaunch the brand in 2012 with a newly developed Black Krystal range of appliances.[3]

In 2015 a former director of the original Kleenmaid business, Gary Collyer Armstrong pleaded guilty and was sentenced to seven years jail for fraud and insolvent trading[4] and in 2016 Bradley Wendell Young, another former director of the original Kleenmaid business was convicted of fraud by dishonesty and criminal insolvent trading and sentenced to nine years jail.[5]

Kleenmaid today is based in Alexandria, Sydney and sells its products via a network of kitchen manufacturers and independent electrical retailers.

History[edit]

Kleenmaid was established on the Sunshine Coast of Queensland in 1984. Its first product was an American manufactured washing machine sold through appliance service agents. These agents recommended the Kleenmaid product whilst attending to service calls on other brands of washing machines in the consumer's home. Kleenmaid later expanded into other products including cooking appliances, refrigerators and vacuum cleaners sourced from a variety of foreign appliance suppliers and sold through major appliance retailers including Harvey Norman & Clive Peeters. After several years of operation in major retailers Kleenmaid severed all ties with these partners and commenced selling through its own network of corporate owned and franchised stores. By 2009 the company had 20 retail outlets operating across five states. Five of these outlets were wholly owned by the company with the remaining 15 held by franchisees. In 2008 the company was reported to have over 400 employees, and was listed in Business Review Weekly's listing of the top 500 Australian companies.[6]

Company collapse[edit]

In 2008 rumours started to circulate about the financial stability of the company. [7] On 9 April 2009 Kleenmaid announced the company would be going into voluntary administration with debts of a reported $67 million. 150 employees were to lose their jobs immediately as a consequence.

On 17 May 2009 the administrators from Deloitte Touche Tohmatsu released their report which revised the debt to $82 million and indicated the company may have been trading while insolvent since June 2007.[8]

On 25 May 2009 creditors voted to liquidate the Kleenmaid Group and Deloitte was appointed as the liquidator. The debt figure was revised to "in excess of $100 million".[9]

Brand Relaunch[edit]

In December 2009 it was announced that Compass Capital Partners had successfully acquired the Kleenmaid brand name. This was accomplished after Compass secured the existing fixed and floating charge over the assets of Orchard KM pty ltd - a Kleenmaid subsidiary. [10] These assets included Kleenmaid's intellectual property such as the trademark, logo and brand name.

Since acquiring the brand, Compass has developed the 'Black Krystal' range of Kleenmaid appliances. The new range was re-launched to the public on 22 February 2012 at the Kleenmaid Experience Centre in Alexandria, NSW.

Kleenmaid Black Krystal 90cm oven

References[edit]

  1. ^ "Liquidators sell off Kleenmaid assets". 30 June 2009. Retrieved 16 August 2016. 
  2. ^ "Compass Capital Partners homepage". 12 April 2012. Retrieved 12 April 2012. 
  3. ^ Reilly, Claire (27 February 2012). "A first look at products from the Next Generation Kleenmaid". Current/Intermedia Group. Retrieved 12 April 2012. 
  4. ^ Small, Stephanie (2 october 2015). "Former Kleenmaid director jailed over offences that contributed to company's collapse". ABC News. Australia. Retrieved 16 August 2016.  Check date values in: |date= (help)
  5. ^ Kruger, Colin (15 August 2016). "Former Kleenmaid director Bradley Wendell Young sentenced to nine year's jail". The Sydney Morning Herald. Sydney, Australia. Retrieved 16 August 2016. 
  6. ^ "Offices are heading north". Courier Mail/News Limited. 26 January 2008. Retrieved 24 June 2009. [dead link]
  7. ^ McCarthy, John (25 April 2009). "Kleenmaid a disaster bound to happen". Courier Mail/News Limited. Retrieved 24 June 2009. 
  8. ^ "Kleenmaid 'may have traded while insolvent'". Courier Mail/News Limited. 18 May 2009. Retrieved 24 June 2009. 
  9. ^ "Kleenmaid Group creditors vote for liquidation". The Australian/News Limited. 25 May 2009. Retrieved 24 June 2009.