Kitchen Things liquidators identify potential breaches of directors’ duties
The liquidators of retail appliance chain Kitchen Things have identified potential breaches of duty by the company’s directors, as ASB Bank looks set to miss out on millions.
Kitchen Things Holdings was placed into receivership in August 2025 after the business and its wider group faced sustained pressure from weaker consumer demand and increased competition.
The company’s directors, Mark Jones and Rachel Louie, made efforts to restructure and reduce costs, but these were insufficient to offset declining sales and margins.
ASB Bank, which holds a general security interest, appointed Stephen Keen, Russell Moore and Adele Hicks of Grant Thornton as receivers to deal with the company’s physical assets.
At the same time, BDO New Zealand’s George Bannerman and Rees Logan were appointed administrators to deal with the wider future of the company, before subsequently tipping the business into liquidation.
In Bannerman and Logan’s third liquidators’ report released on October 22, the pair gave an update on Jones’ and Louie’s conduct.
“Our investigations have identified matters which we consider to be breaches of directors’ duties,” the report says.
“We have served demand on the directors in relation to this and are in the process of preparing a report to the Registrar of Companies in accordance with our duty set out in section 60 of the Insolvency Practitioners Regulation Act to report serious problems.”
In a statement to the Herald, Logan confirmed he has since lodged the section 60 report but could not give any more details.
“Given the sensitive nature of the matters raised in that report and our demands against the directors, we are unable to comment further at this time,” Logan said.
Section 60 of the Insolvency Practitioners Regulation Act states it is the duty of insolvency practitioners to report serious problems.
A serious problem is defined as whether the company or a past or present director has committed an offence, has misapplied or retained the company’s money, is guilty of negligence, default or breach of trust, or has breached a director’s duty in a material respect.
The Heraldapproached the directors for comment on the liquidation and potential breaches of duty, but a solicitor for the pair said they “wish to make no comment at this time”.
As for the remaining claims against the business, ASB Bank is the sole security holder with a general security interest over all companies in the group, including Jones Family Investments, Kitchen Things NZ, Applico, Appliance Works (2015) and three non-trading entities.
Total bank debt when the receivers’ first report came out in October 2025 was $9.9 million (including a $1.8m line of credit).
Based on the receivers’ report dated April 26, 2026, they had made distributions of $4.3m, leaving $5.6m outstanding.
The liquidators understand from the receivers there will be a shortfall to the bank from the realisation of assets, but could not specify the amount.
The receivers assessed creditors holding purchase money security interest (PMSI) registrations and made distributions and/or returned stock to creditors with valid registrations.
Some stock and debtor recoveries subject to PMSI claims remain ongoing.
All preferential creditor claims have been paid in full by the receivers, but because of the remaining shortfall to ASB, any funds available for unsecured creditors will depend on the liquidators’ action against the directors.
Bannerman and Logan could not estimate the end date for the liquidation.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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