Source : Perth Now news
A Victorian caravan maker that employs hundreds of people has gone into voluntary administration, with urgent efforts under way to fulfil customer orders.
Essential Caravans appointed voluntary administrators Paul Allen and Glenn Franklin last week, 11 years after their first caravan rolled out the factory door.
The award-winning Australian manufacturer celebrated making its 5000th caravan in 2023.
The move follows an operational restructure that shifted the company’s manufacturing operations to a single facility at Pakenham, in Melbourne’s outer southeast, as management finds a way forward.
“Essential Caravans primary focus during this transition remains on its valued customers, dealer network, and order fulfilment,” a spokesman said in a statement.
“The administrators and management team are conducting an immediate review of all current customer caravan builds and delivery schedules to minimise disruption to buyers and dealership partners.
“It is the intention that all current orders will be fulfilled.”
Four other caravan business have collapsed in Australia within 12 months.
Maverick Campers chief executive Matt Winen ceased operations earlier this month after a financier seized all its stock forcing them into liquidation
Mr Winen said on social media that Australia’s economic conditions were having a roll-on effect for businesses.
“We all know the financial problems that Australia is having, the world’s having, oil prices, fuel prices, every expense in our household is going up,” he said.
“It’s been significant.”
Mr Winen said he had no choice but to go into liquidation after he thought they had negotiated a plan to juggle a $500,000 debt.
“In the scheme of things, in a business of our size, that’s not a lot of money,” he said.
He said financiers contacted the company saying it would be repossessing all of its caravans at showrooms in Adelaide, Brisbane, Perth and Melbourne.
Mr Winen said they had 72 orders in the books, with customers left in limbo, but insisted that it had no debts to staff, suppliers, landlords or the tax office.
“It’s just pretty rough how it’s all come together,” he said.
Boss Lawyers solicitor Mark Harley reported Maverick Campers’ liabilities were estimated to exceed $6m.
He said the liquidation was triggered by a financier exercising its rights under the Personal Property Securities Act to seize all stock.
It follows the collapse of Zone RV that was wound up owing $42m in January, Star Vision and Australian Off Road that entered voluntary administration with a $9m debt.
“A customer who paid a deposit for goods not yet delivered is treated as an unsecured creditor in the liquidation,” Mr Harley warned consumers.
“If you paid by credit card, you may have a chargeback right under your card’s terms.”
