Kitchen Things leaves creditors $16.6 million out of pocket

Thursday, 18 September 2025

Collapsed kitchenware retailer Kitchen Things owed $16.58 million, of which nearly $10m was to ASB, the first receivers’ report shows.

The Auckland company and six subsidiaries (excluding the Hamilton store) went into receivership last month. Kitchen Things servicing and repairs arm Jones Services and distribution arm Applico were also placed into receivership.

Secured creditor claims were $5.56m and claims from 259 unsecured creditors stood at $980,000.

The first report by receiver Stephen Keen of Grant Thornton issued on Thursday, shows the company made a loss of $2.4m in 2024, down from a $527,000 profit the previous year.

ASB had provided cash advance loans, business loans, credit card facilities, payroll bonds, standby letter of credits and lease premise guarantees across the three borrowers.

Other big creditors included a $2.3m claim from Germany-based Bosch owner BSH Home appliances, Miele NZ $2.1m and Samsung Electronics NZ $285,000.

A total of 124 staff were owed $57,000.

The receivers temporarily opened stores to clear excess stock earlier this month.

Keen said sales were strong through the pandemic and revenue peaked in 2022 as border closures led to more building projects and strength in residential construction.

“However, sales decreased significantly once the borders reopened, compounded by the challenging economic environment with a reduction in consumer spending and construction activity,” he said.

Kitchen Things directors Mark Jones, who founded Kitchen Things in 1986, and his daughter Rachel Louie said they “deeply regret” the closure of the business and its subsidiaries, after years of “unprecedented” economic challenges led to trading losses since 2024.

“Despite the legacy and leadership of the group, unprecedented economic challenges emerged in recent years,” the pair said.

They put the collapse of the 40-year-old business down to a perfect storm of economic headwinds, global trade barriers and supply chain shocks that eroded sales and margins despite restructuring efforts.

“In previous recessions Kitchen Things performed well, but this time many of the high wealth customers still delayed or downsized projects,” they said.

The downturn in high-end building and renovation cut deep into the company’s core market.

“High inflation and high mortgage interest rates meant a lot of people delayed projects of new build or renovation,” they said.

“During this period, my father's declining health added an extra layer of difficulty for the group,” Jones said.

Falling discretionary spending, inflation, a weakening exchange rate and ongoing supply chain disruptions severely affected sales, operating margins, and the ability to plan and invest for the future, they said.

While the company benefited from the Covid-19 pandemic, sales fell significantly, compounded by the challenging economic environment, they said. Staff numbers were cut from 210 to about 125 at the time of the receivership.

Attempts to raise equity and sell the business, or parts of it, were unsuccessful.