The directors of the Kitchen Things group asked its bankers to call in the receivers as the business made continuing losses despite cost cutting and restructuring.
Receiver Stephen Keen of Grant Thornton said efforts to keep the chain going have not countered the drop in sales and shrinking margins.
“Over the past two years, the group has faced sustained pressure from weaker consumer demand and increased competition on pricing, leading to ongoing trading losses.”
“Despite efforts to restructure and reduce costs, including exploring possible sales avenues, these measures were not sufficient to offset declining sales and margins.”
Keen said the group’s 12 stores, including one in Dunedin, have been closed for now, as stock levels are checked and they look at options.
“Our priority is to identify buyers for the business and/or assets of the group, ideally on a going concern basis. Key staff have been retained as we look to manage costs and re-open stores.”
“We are calling for urgent expressions of interest from parties interested in acquiring all or part of the group.”
Kitchen Things was founded in 1986 and dealt in high end international appliance brands including Smeg, Miele, Asko, and Bosch.
It was owned by the Jones Family Business, founded by Mark Jones, and a total of seven companies have been put into receivership.
