Fresh jobs blow as North West firm goes into administration

A one-hundred-year-old company which specialises in cleaning and beauty products is the latest business to hit serious problems.

The Lancashire based Kleeneze has gone into administration putting 140 jobs at risk.
In recent days there have been a slew of announcements from businesses facing serious problems.

Shop Direct announced it is closing two centres in the North West with the loss of 2,000 jobs and Carpetright is closing five stores in the region as part of national restructure.

David Acland and Anthony Collier, partners at specialist business advisory firm FRP Advisory LLP, have been appointed Joint Administrators to Kleeneze.

Kleeneze Limited is a direct sales organisation, which sells and distributes a wide range of household and beauty products through an active network of around 5000 independent sales distributors.

It employs 69 people at its head office in Accrington and a further 71 at its warehouse in Heywood. The business has ceased trading, and all positions are at risk.

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.”

Usdaw, the trade union which represents Kleeneze staff, is seeking urgent meetings with the administrators in a bid to protect members’ jobs at the business.

Annette Bott – Usdaw Area organisers – 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.”

Usdaw officials are also meeting with politicians to discuss the Shop Direct job losses.

They are meeting Debbie Abrahams MP, Jim McMahon MP, and Cllr Jean Stretton, leader of Oldham Council, at Oldham Civic Centre to explore what can be done to persuade Shop Direct to keep their fulfilment facilities in the North West.

The company, which ownsVery.co.uk and Littlewoods.com, plans to close its sites in Shaw, Little Hulton and Raven from mid-2020 onwards and move operations to a new automated warehouse in the East Midlands.

The move has put the jobs of 1,177 Shop Direct employees and 815 agency workers at risk.

Mike Aylward – Usdaw Divisional Officer said: “Our members are understandably upset, angry and frustrated by yesterday’s announcement. We are extremely disappointed that the company has made these plans without first speaking to Usdaw, as the recognised trade union, or local politicians to see what can be done to keep the jobs in the North West.

“We at Usdaw do not regard this as a done deal. We are meeting tomorrow with the local MPs and Oldham Council to see what we can do together to make the company have a rethink.

“Next Thursday we have convened a summit of all Usdaw reps in Shop Direct to formulate our response to the company’s plans. We will then enter into consultation meetings to interrogate the details of the business case for the closures and challenge the plans for relocation.

“We are also grateful to the Mayor of Greater Manchester for his support and we look forward to him meeting our officials and reps in due course.”

“This is a very difficult and distressing time for staff and we will be doing everything possible to save jobs here in the North West and support our members through this process.”