EXCLUSIVE:Electrolux Fail To Explain Questionable Sacking Is There Harvey Norman Commercial Dirt File?

Serious questions are being asked of Electrolux Australian management, after they failed to deny that they had bowed to pressure from Harvey Norman Commercial management to “sack” staff who had set up an account at the Swedish appliance Company for a potential competitor to the Harvey Norman business. Questions are also being asked about a possible dirt file relating to the operations of the Harvey Norman business in Victoria.

Neither Glenda Baily the Director responsible for the running of Harvey Normal Commercial in Victoria or Kurt Hegvold the Managing Director of the struggling Electrolux Australia , have denied allegations put to both of them by ChannelNews last week, that Electrolux management terminated two people involved in the setting up of an account for a Melbourne based plumbing Company.

Hegvold was parachuted into the role after the sudden exit of the former Managing Director John Featherstone and Electrolux Australia head of Human Resources Deb Bowden after an investigation by Electrolux International executives into the concerns of employees as to how Electrolux Australia was being run.

Since then, several senior executives have quit Electrolux because of “The culture” at the Swedish Company and because of the actions of senior management in the day to running of the business.

“Electrolux is struggling and the loss of Harvey Norman Commercial business in Victoria would have resulted as a massive loss for the business,” said a former senior executive.

“The fact that Harvey Norman management made the call and if two people were terminated could result in Electrolux having to compensate the employees especially if they have done nothing wrong”.

Kurt Hegvold the Managing Director of the struggling Electrolux Australia seen here third from the left at IFA 2023.

The drama at HNCV unfolded after the former head of the business that is a franchisee operating as Vic Commercial Pty Ltd Kane Ibbott, a 15-year veteran at the business decided to quit to work for the plumbing Company running a new appliance division.
See story here.
Globally Electrolux is struggling with their share value falling over 21% during the past six months and sine an offer from Chinese Company Midea was rejected.

Recently Australian management were told that they would no longer be reporting to Europe via Singapore following the closure due to cost pressures of the regional operation.Now we can reveal that Electrolux is closing operations in Philippines, and Korea and Japan are next in line as all of those countries are unprofitable.

We also exclusively revealed that Electrolux Australia had moved to restructure their Australian parts distribution operation.

Internal documents leaked to ChannelNews indicate that the Companies Chinese and Thailand operations are only operating at 40% of capacity,

Currently Australia is reporting to new HQ based in Bangkok with management telling ChannelNews that the Australian operation is not performing as forecast.

We were also told that Singapore based senior Electrolux management, refused to relocate to Bangkok resulting in the business not being able to recruit management with appliance experience similar to what Singapore management were able to deliver.
“what they have now is a bunch of junior management running the regional operation”.

ChannelNews has been told that several staff at Harvey Norman Commercial in Victoria are also not happy with the way that the business has been run in the past.

Recently Vic Commercial Pty Ltd commenced legal action against Ibbott in the Victorian Supreme Court with another hearing scheduled for May 29th, 2024.

ChannelNews understands that if the court case against Ibbott goes ahead “A lot of information going back over several years could come out that embarrasses. Harvey Norman management” claims a current employee who has spoken to ChannelNews.

Recently the franchisee running Harvey Norman Commercial in New South Wales was placed into administration following an investigation into the former franchisee.

Late last year ChannelNews exclusively revealed. that the former franchisee of Harvey Norman Commercial, Alan Stephenson the sole director and secretary of Druin the franchisee, operating the business, was sacked by Harvey Norman management following a forensic audit of the books and the charging by NSW Police of two former senior staff members.

Stephenson is a multi-millionaire who owns properties in Coogee NSW, Horse Studs and is believed to be the owner of the property where Harvey Norman Commercial is located in Taren Point NSW.

ChannelNews understands that Harvey Norman has taken over ownership of several properties formerly owned by Alan Stephenson.

At this stage the existance of a dirt file relating to the management of Harvey Norman Commercial Victoria is based on claims only.