The Kleenmaid Appliances dealership.
The Kleenmaid Appliances dealership. Jason Dougherty

Kleenmaid finances caused employees to quit

A KLEENMAID employee quit the former Sunshine Coast-based company due to the stresses of creditors regularly calling demanding payment, a court has heard.

Former Kleenmaid directors Andrew Eric Young, 62, and Bradley Wendell Young, 44, have pleaded not guilty at the Brisbane District Court to charges of fraud and running a company while it was insolvent.

Kleenmaid collapsed in April 2009 when major creditor Westpac Bank placed the company into administration.

Former Kleenmaid director Gary Armstrong has been called as a prosecution witness.

On Wednesday he was shown an email he sent the Youngs regarding one of the company's accountants resigning.

The email Mr Armstrong sent to the Young brothers said the man had quit due to the job's stress.

"One problem is not being able to fulfil payments that have been 'sent'," the email said.

"He can't deal with this, and he can't deal with the telephone calls that result."

The court was shown documents from a number of Kleenmaid's suppliers, a credit insurance agency and a logistics support company asking for accounts to be paid.

An email from Atradius Credit Insurance expressed concern that the company was exposed to more than $6 million in Kleenmaid credit.

The court was also shown a proposed payment plan Mr Armstrong said he had written for the company to pay more than $560,000 in taxes owed to the Australian Tax Office.

The Kleenmaid brand was sold in 2009 to Compass Capital Partners, and the company now operates out of Sydney.

The hearing continues.