August 1, 2014

Fisher & Paykel Struggling – Whirlpool Not Buying, But Sears is Selling

Appliance manufacturer Fisher & Paykel’s debt is predicted to rise to next month as a result of the depreciating New Zealand dollar and a drop in sales. Its profits were expected to drop up to fifty-four percent.

The New Zealand company told investors in February that it was in talks with a number of parties in a bid to raise capital to help with debt levels, Whirlpool was thought to be one of the contenders.

David Graham, Whirlpool general manager of marketing for Australia and New Zealand, told the New Zealand Herald his company would not be the white knight. “At this juncture we are not seeking to acquire Fisher & Paykel New Zealand,” he said.

Commentators said there was only a small chance Fisher & Paykel would find a cornerstone investor to help take on more than $500m in debt when many companies were struggling themselves.

A Government bailout was unlikely and a capital raising from shareholders was the only real option for Fisher & Paykel, they said.

At the same time, Fisher & Paykel Appliances will launch a new brand of home appliances at Sears outlet stores beginning in April. The new Elba by Fisher & Paykel brand will be manufactured in Fisher & Paykel’s North American facilities.

Commenting on the new brand launch in the U.S., Mike Goadby, North American president for Fisher & Paykel Appliances, said, “The company is adapting a strategy it employed in the New Zealand market for the past 12 months with promising results. Fisher & Paykel’s decision to extend its brand is necessary to continue to promote company growth.”

Comments

  1. DO NOT BUY ANYTHING FISHER PAYKEL!! Our $700 washer has had $300 in repairs in it’s first two years. Our $770 dryer has had nearly $800 in repairs in the first 3 years. LOWES extended warranty people won’t replace these units saying it’s not economically feasible for them. DO YOUR RESEARCH AND DON’T BUY F & P!!

  2. We also have a set about 3 years old. The washer is on it’s third drain pump – but they are on national back order. Don’t know when they will be in. What am I supposed to do with laundry until then? We elected to not use the authorized repair center in our area because of several bad experiences in the past with that company. Now I will probably not get the third pump covered under warranty even though the last one only lasted 7 months.

  3. Just bought a new Kenmore Elite washer and dryer with steam. Cant wait to throw my 1 year old (this month) F & P washer in the trash. This is our second washer in the last year. F & P did replace it once. Now our 2 year old F & P dryer is giving us problems again too. We thought we were getting a great quality product, but were wrong. I will never own ANYTHING F & P again. The only thing i will miss about the washer is not seeing the AMBULANCE come out everytime i use it. It is comical.

  4. Steven Appliance Doctor says:

    I am a Technician and know first hand that they are very well built products and a great design. Very simple and few moving parts. There was a problem with the pump on a few models and a fail dryer design but all company’s have some issues but how they recover is the answer.