But Northland Laundry Services says it is doing all it can to help its customers, after the fire destroyed the building it uses on the corner of Commerce St and Okara Dr.
The blaze in October was described as looking like a bomb when it started and took firefighters nearly six hours to contain, with a speciality aerial appliance required from Auckland.
No one was hurt, with the fire most likely started from a failure in an electrical multibox.
But the blaze had a lasting impact on Northland Laundry Services and its customers, which include members of the public and commercial customers such as accommodation providers, said director Steve Baker.
While the business was insured, the depreciated value of customers’ destroyed textiles and clothing is a lot less than replacement costs because they depreciate significantly when used, he said.
“We are doing our best to reimburse them. Some people are very understanding and not that fussed, other items obviously have sentimental value.
“For businesses, their stock is being used every day and it is a bit tricky.”
Baker said for larger commercial customers, the company has been able to source some replacement items at cost price for the customers.
Other customers are being offered a store credit or bank payment to contribute towards replacement or their insurance excess, plus full reimbursement of the dry-cleaning costs.
This approach has left Kaikohe’s Gillian Esquilant out of pocket after her near-new king-size quilt and queen-size knit blanket, taken to Kaikohe Drycleaning, were lost in the blaze.
The fire in October 2024, which destroyed the building used by Northland Laundry Services, was found to be caused by a faulty multibox. Photo / Denise Piper
The items are worth a total of about $500 but are not worth her claiming on her own insurance.
Esquilant said the drycleaners originally said it would compensate customers but communication since then has been poor.
“They said people would be contacted and people would be compensated - I have been waiting since that time.”
After contacting Northland Laundry Services in January, Esquilant was told by email in February the company was not liable for customers' items damaged in the fire, because it was a catastrophic event beyond its control.
The email suggested if she was unhappy with that, she could talk with its insurance company.
Eyewitnesses said the fire initially looked like a bomb, then became very hot. Photo / Da Racoon
The email also said Northland Laundry Services would give her a part-payment but it would be helpful if she had receipts from when she bought the blankets.
Esquilant said she was annoyed at the company’s response, which left her feeling like she had to run around to get receipts.
She believed if the company is not responsible for items lost in its care, it should clearly spell that out to customers when they drop off their goods for cleaning.
Baker acknowledged not all customers were happy and he is sympathetic to customers who have lost important items.
“We obviously want to reach an acceptable outcome for everyone that lost items in the fire but that may not be possible.
“We have put a lot of time and money into this process and we still have a way to go to reach a resolution for everyone affected. We are paying out well above what our insurance cover was for customers' goods lost.”
Baker said Northland Laundry Services is also out of pocket for some of its specialist machinery and stock not fully covered by its insurance.
On the plus side, no jobs have been lost, with the company able to offer its services from its two other laundry sites in Whangārei, its Kaikohe laundry and outsourcing specialised dry cleaning work to an Auckland company.
Baker said the company is planning to expand its building, and increase processing capacity, at its Whangārei Drycleaning site on the corner of Walton and Clyde Sts.
The future of the building on the corner of Commerce St and Okara Dr will be up to the landlord and their insurer, but the company would like to get back there if possible, he said.
Baker said he is grateful no one was hurt and for the “amazing job” by Fire and Emergency fighting the fire.
He said community support after the fire was also appreciated: “It meant a lot to us during a very stressful time”.
NZI executive general manager business Garry Taylor confirmed in general, insurance cover for third-party items is not usually offered unless the business holding insurance is found to be negligent.
“If our customer is negligent, their Liability or Material Damage insurance may apply to third-party property losses. If our customer isn’t legally responsible, their Material Damage and Liability policy won’t cover the loss to their customers’ property.”
Taylor said the third party - in this case, customers like Esquilant - should lodge a claim through their own insurance provider.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
