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 Kleenmaid collapse: Couple loses $13,000 

Kleenmaid collapse: Couple loses $13,000

15 Apr, 2009 01:43 PM
Ernie and Kaylene D'Arcangelo hoped to move into their dream home at Wilton in two months but now face the possibility of living without a kitchen after the collapse of Kleenmaid last week.

The couple had pre-purchased $13,000 worth of appliances from the company but the newly appointed administrators say they can't guarantee the couple will see their goods or receive a refund.

The Queensland-based whitegoods company went into voluntary administration last week with $73 million owed to creditors including banks and other lenders, suppliers, landlords and customers. It has left 150 people without a job.

  • Have you been affected by the Kleenmaid collapse? Leave us a message below, or email us

  • Job cuts at Kleenmaid

    Former Woonona couple Mr and Mrs D'Arcangelo prepaid for a Kleenmaid oven, microwave, rangehood, refrigerator and kitchen sink from the Wollongong store about six months after work began on their new home.

    Despite the fact completion of their house would be almost two years off, Mrs D'Arcangelo thought it wise to get the kitchen payment out of the way and Kleenmaid had a deal too good to resist.

    "We went with Kleenmaid because of its reputation and great warranty," Mrs D'Arcangelo said.

    "They said it was quite common for them to keep the goods for over a year, two years, while people build.

    "The deal is that you buy those appliances and if the model is upgraded in the meantime, you get the new model at no extra cost."

    On Friday, the couple learned about the company's decision to appoint administrators. The next day they rushed to the Wollongong store to find it locked and empty.

    A spokesman for the administrator Deloitte said the D'Arcangelos should visit the company's website and register their details.

  • "They are in the same situation as anybody else who has been paid up in full or in part," he said.

    "They need to give the details of their order or any other important material so we can then try and establish what the next steps are and establish what products we have in the warehouse.

    "There are a number of products in the warehouse where we need to establish ownership and work out what, if anything, can be distributed, or sold through the franchisee network."

    The D'Arcangelos are now living in a shed next door to their new brick home, which is in the pre-gyprock stage. They were hoping to install the kitchen next month.

    Now they are faced with a dilemma - to wait and see whether Kleenmaid comes up with the goods and accept them without a warranty or to swallow the $13,000 loss and buy another brand of appliances.

    "We feel a bit sorry for the people working there as they have lost their jobs," Mrs D'Arcangelo said. "Deloittes are sending a letter today, so we will see what that says."

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    comments


    Date: Newest first | Oldest first
    Only 2weeks ago, we purchased $10,000 worth of white goods, we are in the middle of renovations also and have nothing now, we even sold our old Kleenmade stuff on ebay. We are devastated, how can this happen? Even on the day of the sale the were so convincing that if we paid for it all on that day we get the full warranty which would be better outcome for us, so we did. We have been unable to contact any administration by phone or email to help us.
    Posted by Irene, 15/04/2009 9:09:11 AM
    I wander if there is some kind of insurance that consumers can take to cover them in case supplier goes under. If this is possible, would be nice if somebody spreads the news. In current climate it would be handy, as Kleenmade is not the last Co to file for administrators.
    Posted by Barry, 15/04/2009 4:38:42 PM
    Never liked Kleenmaid's business model. Always felt salespeople where pressure selling so that they can get their commision.
    Posted by tom1962, 15/04/2009 7:19:56 PM
    We are also down $12,000 on new white goods. I was given a 1800 number to call which was disconnected and also sent a email to Deloitte which has not been returned. It is hard to just sit an wait for the nest YouTube update. FFS they have my money and I have NOTHING to show... And if they cared why are they smiling in the YouTube update....
    Posted by OMG, 15/04/2009 10:43:56 PM
    My Mother only recently paid $26,000 on Kleenmaid goods for her future kitchen. For the last 10 years she has worked towards building a home with my father and they were meant to start building within the next month! When we asked the salesperson here in Adelaide what would happen if Kleenmaid ever went under (while my Mother was paying for the goods), he simply said that "that will never happen, and if it did I would loose my house!". Pretty convincing sales pitch, even though the poor fellow may indeed loose his house now, not to mention all the others that borrowed money to start their Kleenmaid stores around Australia.
    Posted by Breadenhound, 17/04/2009 11:06:04 AM
    My husband and I purchased $15000 worth of kitchen appliances at the melbourne home show last September.

    Our first purchase for our dreamhouse but for now it will be our last.

    We were told our goods would be stored for us until we were closer to needing them.

    And that by paying in full we would be making a considerable saving.

    I feel sick to my stomach,but the upside a very expensive lesson learnt "never trust" . Goodbye dreamhouse..see you in a few years.

    Posted by catherine guzzo, 23/04/2009 11:30:44 PM
    We purchased kleenmaid whitegood to the value of $15,353.00 in Sept 2008 and paid for them in full, as was requested, from the osborne park franchise in western australia. We tried without success to claim our good 3 weeks before the collapse. Two days before kleenmaid was made insolvent we went to the store and was told that our exhaust fan would be delieved to our cabinet maker on 9th April 2009, the other goods within 6 weeks. On the 29th April 2009 my husband passed by the kleenmaid store, where they were getting ready to open there doors for a sale. We were told that they were selling floor stock - but how can we be sure of that - This action i believe is immoral and in bad taste. Why should these people retrieve losses at this time while we now called unsecured creditors may never see our kitchens or our money. With my husband now retrenched and us having to buy another kitchen i am appalled that a debt of $73,000,000.00 could have accumulated without being detected.
    Posted by karen Hearty.jones, 1/05/2009 4:21:37 PM
    If a person is silly enough to pay $26,000 for a few whitegoods for their house, it is obvious thay they can also afford to lose the money. Stop whining and go and replace your overpriced stuff at the local store where you can get each piece for a few hundred dollars like the rest of us do. Your kitchen and laundry will still do the job if you don't spend a ridiculous fortune. You could have also purchased a heap of Kleenmaid items on Graysonline for a couple of hundred or so bucks a piece when the auditors auctioned off the remaining stock.
    Posted by Get over it rich kids, 25/07/2009 8:50:06 PM, on Illawarra Mercury

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    Kaylene and Ernie D'Arcangelo stand where kitchen appliances were to go. Picture: KIRK GILMOUR
    Kaylene and Ernie D'Arcangelo stand where kitchen appliances were to go. Picture: KIRK GILMOUR
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