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Former Kleenmaid PA disputes claims

By Mark Bode and AAP 16th April 2009

Speaking Out: Kleenmaid managing director Bradley Young and chairman Andrew Young address the nation on YouTube.

Speaking Out: Kleenmaid managing director Bradley Young and chairman Andrew Young address the nation on YouTube.

The former personal assistant of Kleenmaid managing director Bradley Young has disputed his ex-boss's claim that the global recession caused the company's collapse.

The PA – who quit Kleenmaid in March 2008 after four months in the job, and who spoke on condition of anonymity – said yesterday that the writing was on the wall for the company well before the economic downturn.

He said he had spent a large part of each day following Bradley Young's instructions and fobbing off an avalanche of creditors.

"I left because I could see the company was on the way out," he said.

"Creditors were constantly emailing every day saying, 'When is my bill getting paid?', and they just weren't getting paid."

The whitegoods group, which is headquartered in Maroochydore, went into voluntary administration last week owing $73 million to creditors.

The PA was commenting on the same day that Bradley Young and his brother, Kleenmaid chairman Andrew Young, issued a joint "address to the nation" on YouTube, in which they tabled their economic-downturn defence.

Bradley Young's former assistant said Kleenmaid might not have folded had the brothers, who founded the company in 1985, not been so arrogant.

"It was arrogance that finished them off," he said.

"They just wouldn't listen to people telling them things.

"They had too many ideas which were never going to pan out."

The PA said by the time he left Kleenmaid, no senior manager had been at the company longer than six months.

He described the turnover of staff as "enormous".

An ex-Kleenmaid senior executive, who asked not to be named, backed up the PA's remarks.

"It really annoys me when I read the newspaper and they (the Youngs) blame the economy for what happened," she said.

In the brothers' YouTube address, Bradley Young said the decision to call in the administrator was the result of the "enormous impact the global financial crisis has had upon the Kleenmaid group of companies".

"Over the past six months we've experienced a significant downturn of sales of 25%," he said. "In addition, gross margins have been affected by the weakening Australian dollar."

Andrew Young said voluntary administration would allow the company "to take time and assess all available opportunities, to satisfy the needs of all stakeholders, including you, our valuable customers".

The directors said they would propose a deed-of-company arrangement for creditors, which would result in creditors receiving some money, and the Youngs avoiding liquidation.

Franchisees told 'all is well'

A Kleenmaid franchisee said yesterday that the company's directors had assured him and others only five weeks ago the business was in fine shape.

Merv Kennedy, who operates the Kleenmaid store in Brisbane's Fortitude Valley, opened his doors to customers yesterday, selling his last remaining floor stock of appliances.

Hundreds of Kleenmaid customers who have paid deposits or the full amount for appliances have been left in the lurch after the company went into voluntary administration last week.

Some who had already paid for goods turned up to Mr Kennedy's store yesterday to pay rock-bottom prices for alternative appliances without warranties.

Mr Kennedy said he could sell the stock because it was freehold, unlike that in wholly owned Kleenmaid stores.

"It's been a very, very good day," Mr Kennedy said.

The former West Australian real estate agent bought the franchise in Brisbane last year.

"Our losses are now hitting $1 million," he said.

He said Kleenmaid directors Andrew and Bradley Young had called together the franchisees for a meeting at the head office on the Sunshine Coast about five weeks ago and told them the business was in good shape.

"We all went back to work thinking we've got the answers, but they blatantly lied to us," Mr Kennedy said.

The Sunshine Coast Daily  

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Recent comments on this article

   

if this is true, what hope does the average joe/joey have of seeing their goods or hard earned cash?

By peter_griffin on 16/4/2009 at 6:57AM Suggest removal
   

All you people with deposits paid have to understand that you have lost your money because this is how the law has been written.
This means that your MP has read the text that you will loose your deposits in such a case and voted YES for it. !!!!!!!
Can you believe your representative would vote for such harsh treatment of the ordinary working people.
When it comes to protecting - you the people, in Australian law you are at the bottom of the heap. !
All these unfortunate people who have lost money should form an action group, to change this crippling law. ! Making sure your MP works for you !
There is a safe way to apply the law for deposits,
( Which I can explain if required ) but your MP needs to have this passed through parliament.

By mesenger on 16/4/2009 at 7:53AM Suggest removal
   

The staff turnover story is very true - you only needed to look at the job advertisements in the Sunshine Coast Daily every week to see the same jobs being advertised time and time again. It always seemed very strange to me.

By jane_buderim on 16/4/2009 at 7:46AM Suggest removal
   

Given the big show the Youngs have put on - If its proven they have broken the law - I sincerely hope that they are punished severely. Made an example of... laws tightened ...and enforced. Whatever. This debacle should not be allowed to recur. Its absolutely sickening, especially when you get the feeling that even if there was wrongdoing - they might somehow avoid real penalty and do an "Alan Bond".

By SunMan on 16/4/2009 at 7:47AM Suggest removal
   

No new surprises. Rip-off merchants who screwed every last dollar out of its customers, are supposed to be good for capitalism.

By oreilly on 16/4/2009 at 8:47AM Suggest removal
   

How about the Son in all this mess /..after I met him he is probaly applying to a Used Car lot now to make an earner !

By FRED_FART on 16/4/2009 at 8:19AM Suggest removal
   

TO MY FELLOW CITIZENS..

AN ADDRESS TO THE NATION FROM FRED FART & CO.

Buy the way..whats with the sign on The OLD head office door instructing peolple to go chase the bank if you made a credit card payment as a deposit or purchase.

Why are the banks to blame in this and have to give cash back ?..or did they know something we didn't and let the rope out ??

Are they suggesting the BANKS took the money in a fraudulant manner ?..I dont think so they just run the bank account that the YOUNGS instructed the cash to be swiped into.

If they think the bank took the money, perhaps they need a mirror to look into to find the answers to a few of their questions.

I dont think the KLEENMAID name cuts it any more..

How about SCUM-MADE.

By FRED_FART on 16/4/2009 at 8:20AM Suggest removal
   

The authorities must step in and make a statement about this, if any of the reports in the press is true (and I have no reason to doubt they're not), it's misleading and deceptive conduct, it's fraud and it's trading while insolvent.

If the authorities turn a blind eye, every other business will suffer because people WILL NOT hand over money before receiving their goods. Retail will be affected, motor vehicles, housing, the list is endless.....

By b4ref33t on 16/4/2009 at 10:17AM Suggest removal
   

Large and small companies can and do go out of business with no warning to their customers. There are many examples, including large and long standing businesses.

In almost every case customers and employees have lost out, while directors and executives have not. The inequity needs to be addressed. I encourage everyone to write to their MPs, state and federal, and demand action. If you are not satisfied with their response then vote against them at the next election. Put aside party politics, punish your individual MP for inaction. If enough of us do it they will eventually get the message.

In the meantime, we should all learn from this and similar incidents - never pay until you have the goods. Any well run business will have sufficient working capital to meet its day to day needs, and should not be asking for advance payments.

For bulky items which need to be delivered, payment on delivery is not difficult. Cash and cheques have been around a long time, and mobile credit card terminals are readily available.

Employees - make sure your pay and super contributions are being made on time. Check the balance of your super account every quarter to make sure that it is being deposited. If your super fund doesn't have an on line facility to allow this, then change to one that does.

You have the power. Use it.

By Ohnjay on 16/4/2009 at 10:15AM Suggest removal
   

No its not the banks fault, but it is a way of getting your money back. Ever since the Ansett collapse I have paid for everything on credit card, I also got my money back when the managers of a hotel in Melbourne when into receivership and pocketed my deposit. My bank kindly refunded my money as I did not receive the goods that I had paid for. I hope that most of Kleenmaids deposits where paid for by credit card, that way the every day Australians (those that can afford to buy Kleenmaid of course) can get their deposits back. Perhaps the banks are considered a secured creditor, unlike the customers.

By palmwoodsmum on 16/4/2009 at 11:56AM Suggest removal
   

my friend who worked there 12 months ago told then that it was in trouble, thats why she left when she did.
she was told by the company push for sales we need more sales. she knew one day that these poor people would not see there goods.
these so called owners claim to be mormans if that is the case, don't do to others that you would'nt like to be to yourself. shame on you. sell your assets and give people there money back.
what would god say to you?

By localgirl on 16/4/2009 at 11:48AM Suggest removal
   

Staff had checked their super guarantee payments and there was a complaint made to the ATO last year. Unfortunately the ATO is a government organisation and moves at an almost imperceptable rate. The ATO website even states that it can take up to a year to investigate.

By the_insider on 16/4/2009 at 11:25AM Suggest removal
   

Complaining to the ATO is only the first move. Complaints need to be followed up. ATO inaction is another matter to complain loudly to your federal MP about. You can also contact the media and get some public exposure for the original problem and also for the failure of the ATO to act.

We need to stop shrugging our shoulders about this sort of thing, and start making a lot of noise.

By Ohnjay on 16/4/2009 at 12:30PM Suggest removal
   

Maybe the happy clapper church should refund the cash as they were probably taking a tithe from the owners and the company profits

By kooky on 16/4/2009 at 12:13PM Suggest removal
   

I paid for my goods at kleenmaid in full and they were going to hold them till I needed them but I heard a whisper some months ago and got them out asap although it took many phone calls. I am one of the lucky ones. I have come to the conclusion that I will not be paying up front for anything. I am currently building a house and a couple of trades have asked for significant up front payments which I have refused and gone to a subbie who is prepared to be payed at 7 or 14 days after completion or accept progress payments in the case of bigger trades

By kooky on 16/4/2009 at 12:25PM Suggest removal
   

The Corporations Act S588G details trading while insolvent. How can any company have debts of $70m are revenues of $90M. These debts equate to 10 months of revenues.

Now it is suggested that the Youngs are proposing a DOCA. Just like the owners of Storm Financial. Fortunately ASIC stepped in and sought liquidation instead of offering immunity as part of the Storn DOCA.

Do not be misled here, the Youngs want to wipe out debts of $70m for cents in the $. and go again. Lets not let them and ensure ASIC undertakes its reposnbilities to all Australians and take action like storm.

Disclosure: I paid $35,000 payment in full for goods they said they store on behalf of the customoers instead of us having to store them. They have not delivered the goods when requested, they offered refunds in 7-10 days which never came and guess what no goods got delivered either.

By grantfreeman on 16/4/2009 at 12:36PM Suggest removal
   

Everybody is blaming the economic down turn yes it is hitting some companies bad but this particular company continued to get customers to pay knowing full well that they were in some serious issues. What happened to the money oh thats right they must have pocketed it because its no where to be seen. How do companies get themselves in to such big debts? If the bank keep advancing money
and they are not repaying the loans how come the banks arent doing anything. Supposed Mormons I dont think so you have disgraced yourself kleenmaid own up to your mistakes and try to rectify the problem

By struggle on 16/4/2009 at 1:13PM Suggest removal
   

You would think having a "religous" background there would be some sort of moral responsibility I suppose you can always say something but actions will always speak louder than words...

By DevilsAdvocate on 16/4/2009 at 3:27PM Suggest removal
   

They think like their God...they were going to Rise from the Dead last Sunday.

She is Kaput this Puppy..no DOCA, no nothin !

By FRED_FART on 16/4/2009 at 3:12PM Suggest removal
   

Like someone else said on another post somewhere in the Daily. Where else would you try and hide gross fiscal mis-management? In a Global Financial Crisis - doh!
But, it is a sad story, sad for employees, sad for their Outlets and sad for Customers.

By ThePeanutGallery on 16/4/2009 at 7:16PM Suggest removal
   

Just had an interesting read of the Mormon website (what a hoot) - one of the "commandments" (they have different ones to regular people) is "OBEY AND HONOUR THE LAW" - now we just need to know which one!
Young boys - a restoration of truth is required! - Better re-read the Articles of Faith 1:12
No DOCA.

By Joe_Smith on 16/4/2009 at 7:06PM Suggest removal
   

In his Youtube broadcast, Andrew Young says, '...including you, our VALUABLE customers.' I think this was a Freudian slip. I believe he meant to say, '...including you, our VALUED customers.' Then again, perhaps not...considering how much money they made from the purchases and deposits of their customers who received nothing from them!

By diddleedee on 17/4/2009 at 8:28AM Suggest removal
   

They will do as the Goose did in the USA and follow the Pieons WEST !..and satrt a new business...sorry Church !

Classic "OBEY AND HONOUR THE LAW"..looks like their God is going to give them a real shafting, just like they have to us minnows.

By FRED_FART on 17/4/2009 at 10:41AM Suggest removal
   

This says it all. A response to the KM video.

http://www.youtube.com/watch?v=8bWd6s...

By debbiemagee on 17/4/2009 at 10:30AM Suggest removal
   

I have just heard of a story regarding a couple from Bribie Island. They went to a recent Home Show at which Kleenmaid had a stand and paid in full for new appliances to get an "on the day discount". (OBVIOUSLY A DESPERATE ATTEMPT TO RAISE FUNDS) These appliances were something they had always wanted and have now been completely ripped off by these thieves. The worst part of it is they are an elderly couple who had bought the goods as a 50th anniversary present to themselves.

By kooky on 17/4/2009 at 10:50AM Suggest removal
   

Do they really think that the public is so dumb that anybody would EVER again buy anything from them or a company related to them - especially one called Kleenmaid. But they probably do, and the public probably would. I've stopped leaving a deposit on anything and pay subbies as they deliver. All because of these sort of despicable and untrustworthy people. Shame on you, your business and your church.

By ceebails on 17/4/2009 at 9:39PM Suggest removal
   

Perhaps somebody should look into January and february of 2009...one kleenmaid company with receivers involved...staff not paid....up to 10 stores close overnight...how many alarm bells have to ring before somebody screams insolvency?

By not_cricket on 17/4/2009 at 10:16PM Suggest removal
   

Just read the blogs here. It's really obvious that this has hurt many people and many are justifiably upset. However, attacking the fact that these guys go to some church is an absolute disgrace. If they were from a racial minority would you attack that too?????
no wonder queensland has the reputation it does

By oldskool74 on 18/4/2009 at 12:52AM Suggest removal
   

althougt its hard to swallow losing moneys as deposit on goods that you will never see iam sure that the youngs did not intentually go out to hurt people or there employees,
as we have clearly seen in the media they are passionate about saving there bussiness they built from the ground up.
if they were not passionate about there bussinesss they would not be talking to any one and probley relocated to another state.
I believe that If they had have started telling people the real possition of there company iam sure kleenmaid would have been going down this road alot earlier i as there consumers would have not delt with kleenmaid at all.
keep in mind that this is a bussiness that has kept alot of people employed for a long time 25 years in not a fly by night opperation.

By Buderim_007 on 18/4/2009 at 8:35AM Suggest removal
   

About time Laws were changed.
Time to lock up these Owner Directors, CEO's, who clean their businesses out then also Fraudulently take their clients money.

By realisticpaul on 18/4/2009 at 11:50AM Suggest removal
   

You don;t get it, oldskool74.

They have been giving their ill-gotten gains to the church and claiming to be holy but they are not.

You have missed the point entirely.

By debbiemagee on 18/4/2009 at 2:15PM Suggest removal
   

yes, i do get it debbiemagee, this has nothing to do with religion.

it's clowns like you who are likely still mourning the demise of One Nation.

By oldskool74 on 19/4/2009 at 1:39AM Suggest removal
   

Have a look at the way Andrew Young squirms on the youtube video. His body lauagage says it all!

By Johnrobertson on 19/4/2009 at 7:58AM Suggest removal
   

My red nose is entirley down to booze, thank you, not clowning.

If I was more nimble I would happily climb over that fence on the highway and tear that One Nation banner down from that idiots farm.

I don't know how you made the leap from me being a rational anti-religionist to supporting a hateful, poisonous scar on Australian culture unless you were just baiting and hoping to stir up a different discussion. Hmmm... I wonder which?

By debbiemagee on 19/4/2009 at 8:46AM Suggest removal
   

well, bigotry has several cunning disguises.

By oldskool74 on 19/4/2009 at 11:09AM Suggest removal
   

I'll play your game, oldskool.

Despite the fact that your arguments amount to nothing other than baiting and have no logic behind them or rational thought, I'll still play along.

My 'bigotry', as you call it (incorrectly, by the way; read your philosophers) is atheism. I do not believe in a higher being or creator as every single scrap of scientific evidence is against it and I think that people who do have religion are wasting their time when they could be doing better things like improving the world and being tolerant.

Notice that I don't tell people that if they don't have the same beliefs as me then they will go to some imaginary place of torture or that they are lesser people.

The Young brothers believe that Jesus came to America and taught the Native Americans his ways. He then went to a distant planet and became an alien god that rules there. If you believe in the LDS creed then you, too, can go to that planet when you die. They also believe that you can baptise the dead which is why they have the world's largest genealogical depositry. Once they have your death certificate, they can baptise away to their hearts content.

These beliefs, despite their obvious insanity, tell their followers to be good, don't steal, don't kill.

They Youngs have allegedly given untold thousands to the LDS church which has been funnelled from Kleenmaid.

ps. if you want to talk bigotry, look at the writings of Joseph Smith, founder of the LDS church and see what he has to say about non-white people

By debbiemagee on 19/4/2009 at 3:37PM Suggest removal
   

I worked for Financial Controller back in the 90's and this company had trouble paying its bills then...I can't believe they've effectively traded for so long. It's disappointing for the workers as the Sunshine Coast has a very high cost of living and a high unemployment rate. It's no surprise, just a surprise it took so long to crash.

By Gunner63 on 19/4/2009 at 7:18PM Suggest removal

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