At the second meeting of creditors held in Brisbane yesterday morning, approximately 80 Kleenmaid creditors decided the fate of the disgraced company, deciding that liquidation was the only option.

Two of the directors who have been at the epicentre of all the action are Andrew and Bradley Young, both were on hand at the meeting, but offered very little comment and refused to address questions directly.

Administrator, John Greig, again confirmed that the group has over $102 million in liabilities, that he believes there has been significant breaches of director’s duties and that there is very little chance of a dividend to unsecured creditors.

“Creditors have today expressed their disbelief about the likely date of insolvent trading being as early as 2007, a number of consumer creditors have been hurt by this collapse and unfortunately, it appears their position will be that there is not enough stock or assets to satisfy their claims,” he said.

Greig commented that the next step of a liquidator will be to sell the realisable assets and to discuss further funding options available through the ASIC.

He also highlighted that a liquidator will provide employees with the right to apply for compensation through the General Employee Entitlements Redundancy Scheme, but confirmed that franchisees are in a much more difficult situation.

“They have essentially lost their investment,” he said.

Greig also dismissed Andrew and Bradley Young’s reasoning that the collapse was a ramification of the global financial crisis.

“The financial crisis has affected many businesses, but the liquidators believe that the Group had been insolvent before the global financial crisis.”

The latest issue to also be addressed at the meeting was the claim that the Young’s were removing official Kleenmaid documents from head office on Friday.

He confirmed that out of the 30 boxes taken by the directors, 20 were with the authority of the administrators as they were unrelated to the Kleenmaid Group companies. But the contents of the remaining 10 boxes are still unknown.