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Kleenmaid’s former directors face criminal charges

Sarah Stowe


Three former directors of national whitegoods distributor Kleenmaid are facing 20 criminal charges including insolvent trading and a $13 million fraud.

Andrew Eric Young, Bradley Wendell Young and Gary Colleyer Armstrong appeared at Maroochydore Magistrates Court today.

Following an investigation by the Australian Securities and Investments Commission the trio have been charged with 18 counts of criminal insolvent trading of debts totalling more than $4 million and a $13 million fraud committed on Westpac Bank.

According to ASIC, Gary Armstrong and Andrew Eric Young have also been charged with further fraud, accused of withdrawing $330,000 from the companyÍs bank accounts two days before it went into voluntary administration.

The focus of ASICÍs investigation centred on the solvency of the Kleenmaid Group and a corporate restructure undertaken by the Kleenmaid directors in September 2007. ASIC alleges the Kleenmaid Group continued to trade despite becoming insolvent from March 2008.

The matter returns to Maroochydore Magistrates Court on 17 May 2012.

Background

The Kleenmaid group of companies operated the Kleenmaid brand of kitchen appliances and was an importer and distributor of whitegoods, operating 22 outlets Australia-wide including 15 franchise stores and seven company-owned stores.

How it happened

ASIC investigation; a lifeline for franchisees; franchisees face lost investment; grim future; collapse of business