Kitchen House Limited – In Receivership

Media Release
24 February 2009

Kitchen House Limited – In Receivership

BDO Spicers Auckland announces that Brian Mayo-Smith and Shaun Adams were appointed Joint Receivers and Managers of the above company on 23rd February 2009.

Kitchen House Limited sells, manufactures, distributes and installs fully assembled kitchens directly to the customer. Current operations include a manufacturing facility based in Mt Wellington that carries out the manufacture of cabinets, doors and bench tops, and 7 whollyowned super stores and a discount factory outlet located in Auckland and other key centres throughout the North Island. The Company currently employs 29 staff at its head office and manufacturing facility and 33 full and part-time staff out of the retail outlets.

The Company has been trading as Kitchen House for the last 4 years as a manufacturer and retailer of kitchens. The business grew significantly up until 2006; however the downturn in property developments and the softening of the residential housing market during the latter part of 2007 and 2008 started to take its toll, ultimately leading to cash flow difficulties, and the receivership. Over the past 18 months, the working shareholders have attempted a number of restructures and are understandably devastated that after almost 20 years in business, these attempts have been unsuccessful.

The Receivers wish to provide comfort to the Company’s current customers that every effort will be made to satisfy outstanding orders in a timely and efficient manner. Any enquires from customers should be directed to Kitchen House personnel in the first instance.

The primary objective of the Receivers is to sell this unique business opportunity as a going concern either in part or as a whole. Any interested parties should contact Shaun Adams of BDO Spicers Auckland as a matter of urgency.

Receivership updates will be available at www.bdospicers.com/kitchenhouse

ENDS

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