Job cuts at Kleenmaid

Kleenmaid's 150 staff will lose their jobs after the Queensland-based up-market kitchen and laundry appliance seller was put into voluntary administration.However, 25 employees will be asked to help with the administration process involving the company which had 20 outlets in NSW, Queensland, Victoria, South Australia and Western Australia and a $90 million turnover last year.A total of $27 million in customer deposits has also been lost, the administrator says.Kleenmaid Group went into voluntary administration on Thursday on the back of the global economic slump, saying it hoped not to have to let all its staff go.Kleenmaid has one store in Wollongong, however the shop was closed yesterday due to the public holiday and no-one was available for comment. A sign had been placed in the window advising customers to phone a Queensland number with inquiries.Administrator John Greig, of Deloitte, said in a statement that Kleenmaid staff would lose their jobs, customers would lose deposits and warranties could no longer be honoured."Unfortunately, we have been unable to continue the employment of all 150 Kleenmaid staff," the statement said. "However, around 25 employees will be contacted over the Easter weekend to return to Kleenmaid to provide assistance with the administration process and dealing with inquiries. "Customers who have paid deposits for goods are now effectively unsecured creditors and will receive a letter explaining the next steps of the administrative process shortly. Unfortunately, Kleenmaid will not be in a position to honour any existing warranties."We would advise warranty holders to contact the existing Kleenmaid service representatives, who are all independent service franchisees, to make arrangements to repair any faulty items at the customer's cost." Customer deposits equal $27 million of Kleenmaid's total debt, estimated at $67 million owed to both trade and secured creditors. Kleenmaid, founded in 1985, was headquartered at Maroochydore on Queensland's Sunshine Coast. The group owns five outlets - the 15 others are franchises.Mr Greig yesterday said a further statement would be made on Tuesday.