Leading Australian caravan maker collapses into administration
A major Australian caravan maker has collapsed into administration, the third such business to run into dire financial troubles in the space of just two months.
The proudly Australian-made and owned, and Victorian-based, Essential Caravans fell into administration last week, according to documents lodged with financial watchdog ASIC, potentially putting hundreds of jobs at risk.
An SUV towing a caravan made by Essential Caravans. Essential Caravans
Paul A. Allen and Glenn J. Franklin of PKF Melbourne were appointed as administrators on October 21.
A statement issued by them said the company is still aiming to meet all existing customer orders.
“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,” the statement read.
The fall into administration comes despite the company moving all its manufacturing into a single facility in Pakenham, in Melbourne’s eastern outskirts.
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According to the company’s website, Essential Caravans has been running for more than 35 years, and employs more than 200 people.
It has built more than 5000 caravans since 2015.
The news comes weeks after another Australian caravan company fell into liquidation after almost 10 years in business.
On October 2, Maverick Campers, which traded under the company Fetch Business Solutions Pty Ltd, appointed Yulia Petrenko and Malcolm Howell of Jirsch Sutherland as joint liquidators.
The company had showrooms in Adelaide, Brisbane, Perth and Melbourne.
The company’s founder and chief executive Matt Winen took to social media on October 2 to break the news to its customers.
“We all know that the financial problems that Australia is having, the world is having,” Winen said.
“Oil prices, fuel prices, every expense in our household is going up, it’s an unfortunate part about the Australian economy right now.
Maverick Campers plunged into liquidation after almost 10 years in business. Supplied
“That had a roll on effect to every business, not just the caravan industry.
“Maverick Campers have been bucking a lot of the trend, we know a lot of other campers are measuring significant downturns.
“We have been ups and downs like any business, but generally, we feel we have bucking the trend with some of that stuff.“
Liquidators, who assumed control of the company’s stock, said its liabilities appear to exceed $6 million, based on currently available books and records.
Petrenko, who was appointed as a joint liquidator, pointed to rising interest rates and overseas competition as factors blasting the sector.
“The caravan industry is a good example of the pressures facing businesses that have significant capital tied up in stock,” Petrenko said.
“Manufacturers and dealers are dealing with higher operating and finance costs, with recent interest rate rises adding further pressure.
“At the same time, consumers are becoming more cautious and taking longer to commit to significant discretionary purchases.”
That, in turn, followed fellow caravan maker Australian Off Road entering administration after 26 years in September.
It said Chinese imports, competitors copying its products, and lower manufacturing costs in other parts of Australia had made it increasingly difficult to compete on price.
Nine.com.au has reached out to Essential Caravans for comment.
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