FRP Advisory mopping up Kleeneze administration
FRP Advisory has been appointed as administrators to Kleeneze, the 95-year old home shopping company which has ceased trading, putting 140 jobs at risk
13 Apr 2018
Kleeneze specialised in doorstep sales of household and beauty products, using a network of around 5,000 self-employed distributors to deliver catalogues in the UK and Ireland. Distributors received a commission on sales.
The company employs 69 permanent staff at its head office in Accrington, Lancashire, and a further 71 at its warehouse in Heywood, Greater Manchester.
David Acland, FRP Advisory partner and joint administrator, said: ‘Kleeneze has performed well over the years and has a strong network of independent sales distributors.
‘Unfortunately, tough trading conditions have resulted in the business entering administration.
"The business suffered from operational issues after its move to the Heywood distribution site earlier in 2017.
‘There were logistics challenges and IT issues that took six months to resolve, which resulted in significant lost sales.’
The administrators are currently seeking a buyer for the business, which was founded in 1923 when Harry Crook started the business selling brushes made in a broom cupboard in Bristol. The last accounts filed for Kleeneze show a loss of £3.3m in 2016 on turnover of £21m.
Report by Pat Sweet