Kitchen Things, a nationwide premium kitchen and laundry appliance company, has entered receivership following continued trading losses.
Russell Moore, Stephen Keen, and Adele Hicks from Grant Thornton New Zealand have been appointed as receivers.
Kitchen Things operates 12 stores across New Zealand, all of which have been temporarily shut down.
The receivers said the group has experienced ongoing challenges due to reduced consumer demand and heightened pricing competition over the last two years.
Attempts to restructure and cut costs have been insufficient to counterbalance falling sales and shrinking margins.
The directors concluded that the group could no longer sustain trading and requested ASB, the holder of the General Security Deeds, to appoint receivers.
“We have temporarily closed all stores while we assess stock and establish next steps for the group,” Keen said.
“Our priority is to identify buyers for the business and/or assets of the group, ideally on a going concern basis.”
Keen stated that essential staff have been retained to control costs and facilitate the reopening of stores.
“We are calling for urgent expressions of interest from parties interested in acquiring all or part of the group.”
The appointment also impacts related entities such as the group’s distribution division–Applico Limited, Baumatic Appliances Limited, and Jones Family Investments Limited.
Founded by Mark Jones and originally under the name Kitchen ‘N’ Things, Kitchen Things was established in 1986 and sells leading international brands including Smeg, Asko, Miele, Bosch, Samsung and LG.
Although 12 stores nationwide will be closed, the Kitchen Things store in Hamilton will stay open. It is operated by an independent franchise entity and is not affected by the receivership and administration.