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Former franchisor heads to court

Sarah Stowe

The former headman of fallen whitegoods distribution franchise Kleenmaid has pleaded guilty to three charges relating to the business’s collapse.

Gary Collyer Armstrong appeared before Brisbane District Court Monday on a charge of dishonesty gaining a loan of $13 million in 2007, as well as two counts of insolvent trading relating to debts of about $3.5 million dating back to 2008.

Kleenmaid had about 200 staff and 15 retail franchises before it collapsed in 2009 when liquidators reported consolidated debts of close to $100 million.