Electric appliance retailer ‘in shock’ after £30m loss
The company that runs the £30 million refurbishment of a Royal LePage gas boiler is “in shock” after losing $30 million in its first week of operation.
Key points:A Royal LePayton spokesman said the boiler was being replaced by a different supplierThe boiler was fitted to a different unit at a gas supplier in 2016 and has since been resold for more than $1 millionThe spokesman said he was “completely unaware” of the problems which caused the lossRoyal LePayron said the company has now sold the boiler and is “hoping to find a suitable buyer”The Royal LePainton brand of electric appliances is now owned by Royal LePaige in New Zealand and is part of the company’s $50 million refurbishments programme.
The company said it was “disappointed and shocked” by the loss, but is “somewhat reassured” by its future plans.
The spokesman told ABC Radio Melbourne the company was now looking for a buyer.
“This was a refurbished gas boiler with no previous experience and was fitted by the supplier in New England,” he said.
“There was no experience of this particular boiler, it was an old gas boiler.”
The spokesman would not confirm the date of the sale or say how much the company lost.
“We have been trying to get this fixed,” he added.
The boiler at Royal LePeakton was fitted with a new supply chain in 2016, but was later resold in 2016 for $1.8 million.
It was purchased by a company based in New York and sold in New Jersey, for $800,000.
The new supplier has since sold the old boiler to a new gas company.
In a statement to ABC Radio, Royal LePaint said the problem arose in 2016 when the supplier changed its gas supply and the boiler went out of service.
“In 2016 we were contacted by a gas company who had purchased the boiler from a gas retailer in New Mexico, but this was a gas supply change,” the spokesman said.
The statement said the supplier had not been able to sell the boiler to another company due to the difficulty in replacing the boiler.
“Our enquiries and investigation into the matter has found no fault with the replacement of the boiler or the supply of the new supplier.”‘
There was a change of supplier’Royal LePaints spokesman said there was no evidence of any problems with the old supplier and that it was working to find an appropriate buyer for the boiler which was now being sold.
“The boiler and supply changes were part of a wider change of the supplier and the new buyer has no direct knowledge of the issue and does not currently own or operate the boiler,” he told ABC.
“Royal LePainting is completely unaware of any issues with the boiler that we are aware of.”