Monday 10th Dec 2018 - Logistics Manager Magazine

Kleeneze calls in administrators

Kleeneze, the direct selling organisation specialising in household and beauty products, has gone into administration, just months after moving into a new warehouse at Heywood in Manchester.

The company ceased to trade after David Acland and Anthony Collier, partners at FRP Advisory were appointed joint administrators in 12th April.

Kleeneze Limited is a 95-year old direct sales organisation, which sells and distributes a wide range of household and beauty products through an active network of around 5,000 independent sales distributors.

It employs 69 people at its head office in Accrington and a further 71 at its warehouse in Heywood.

Joint Administrator David Acland 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 has ceased to trade but we would urge any parties interested in acquiring the business to contact us as soon as possible. In the meantime, we are assisting employees and stakeholders during this difficult period.”

Trade union Usdaw said it was seeking urgent meetings with the administrators in a bid to protect members’ jobs.

Area organiser Annette Bott said: “This is clearly a difficult and upsetting time for the 140 staff based in Accrington and Heywood. We are pressing the administrators to find a buyer for the company who will protect jobs and keep the business going. In the meantime we are providing our members with the support, advice and representation they need.”

Kleeneze Ltd, which was founded in 1923, moved into a new warehouse at Heywood in Greater Manchester in 2017. Kleeneze Ltd made a loss of £3.3 million in the year to 30th December 2016, the last year for which figures are available, despite a 25 per cent increase in turnover to £21m.