Just ahead of the creditors meeting scheduled for 10am this morning, Deloitte confirmed late yesterday afternoon that customers will not be receiving any goods even if they have put a deposit on items or paid in full.

“It has now become clear that the customers who have paid for new Kleenmaid appliances will not be receiving those goods. As previously advised, the Kleenmaid terms of conditions of sale for new appliances make it clear that ownership of the goods does not pass to customers until they have been paid for in full and have been delivered to the customer,” said joint administrator of Kleenmaid Group and Deloitte partner John Greig.

“We have now confirmed that the new stock owned by Kleenmaid is minimal given that the stock is subject to a number of competing claims by various creditors.”

Greig commented that the warehouse provider is owed a sum of $2.1 million and has claimed a lien over all stock. This means they will not be releasing stock to any party, including administrators or customers until arrangements have been made to pay the debt.

“The current cost value of Kleenmaid owned appliance stock held by them is only $2.9m which comprises some damaged and superseded stock. All other stock held by the warehouse provider is consignment stock which is owned by overseas suppliers or manufacturers and not by Kleenmaid,” Greig said.

“Consequently, after satisfying the warehouse providers claim there is likely to be little if any stock available to satisfy the secured and unsecured customer claims, which are estimated at $27.6m and $27m respectively.”

Greig acknowledged that many customers would be distressed at this announcement and stated that they should still lodge their claim to the administrators if they haven’t already done so.

But by the looks of it, it doesn’t seem like any unsecured creditors will see any return.

“Unfortunately at this stage we do not foresee that the available assets of the Kleenmaid Group will provide any return to unsecured creditors.”

Administrators stated that this message will be reiterated to creditors this morning at the meeting of creditors in Brisbane.

Greig also commented that an advertisement will appear from today seeking expressions of interest to acquire the Kleenmaid business. He confirmed that some interest has been expressed to date in certain parts of the business.

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