A Kitchen Things store. Photo: Google Maps
Failed premium appliance company Kitchen Things' Napier and Nelson stores will be permanently closed down this weekend.
Kitchen Things - aside from its independent Hamilton store - entered administration and receivership in August amid mounting losses due to weak consumer demand and competition.
Receivers Grant Thornton said all stock would be made available below cost.
Receiver Stephen Keen of Grant Thornton said the receivership sale continued for stores in Auckland, Christchurch, Tauranga and Wellington, with products at these locations being sold at cost.
"It's unfortunate there has been a lack of interest in the Napier and Nelson stores, but we remain optimistic the other stores in Auckland, Tauranga, Wellington and Christchurch may be acquired by one of the interested parties we are working with," Keen said.
"In the meantime, we are continuing to sell stock held at heavily discounted prices to achieve the best possible recovery."
Keen said while prices for big name brands were "heavily reduced", buyers should be aware all stock must be bought on an "as is, where is" basis, with no warranties or guarantees.
Returns, refunds and exchanges were also not available.
Just $3000 cash left
In the first administrators report by accounting firm BDO, Kitchen Things owed creditors $16.6 million, with ASB owed nearly $10m.
It said the company had just $3000 cash-in-hand at the end of July.
BDO said Kitchen Things benefited through the Covid period, but sales fell "significantly" afterwards.
"With the decline in sales and margins, the high fixed cost base made it unprofitable," the BDO report said.
"Restructure steps were undertaken to reduce costs with store closures and staff reductions."
BDO said cost-cutting measures did not pay off, and attempts to raise money and sell the business or parts of it did not succeed.
BDO recommended the creditors vote against returning control of the companies to its directors, and to vote in favour of placing them into liquidation.
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