Deloitte, the administrators of the collapsed Kleenmaid Group, has responded to queries that it has provided $20 million to its spare parts provider, Edis Service Logistics.
Appliance Retailer received reports over the weekend that $20 million has been given to Edis by the administrators in order to buy stock and fill back orders.
Deloitte’s communications manager, Jonathan Sollitt-Davis, contacted Appliance Retailer this morning to provide comment on these reports.
“I can confirm that Deloitte has provided funds to Edis Service Logistics,” he said.
Whilst Sollitt-Davis could not report how much was actually awarded to the company, he did emphasise that it was nowhere near $20 million and was only a fraction of this.
This announcement will undoubtedly anger many of Kleenmaid’s creditors who are awaiting a total of $76 million, but Sollitt-Davis confirmed that the decision was in the best interest of the company.
“Edis Service Logistics is the only part of the business that continues to trade whilst under administration, and we have to ensure that it continues to do so.”
Sollitt-Davis furthered this reasoning to the fact that there have been numerous expressions of interest to purchase the Edis company.
“Currently there are many possible buyers for the company and Deloitte wants to ensure that the company can continue trading until we confirm a buyer.”
It was confirmed that Deloitte is investing heavily into the Edis business due to the fact that thousands of Kleenmaid customers will require spare parts and repairs well into the future, but when numerous creditors are breathing down the neck of the company for millions of dollars, is it wise for the administrators to provide funding when these creditors are waiting?