It looks set to be a harrowing few weeks and months ahead for customers who have paid money to Zone RV, the latest caravan manufacturer to go into administration.
The first meeting of creditors of the company – which is based on Queensland’s Sunshine Coast – will take place tomorrow, where administrators Cor Cordis will reveal how much debt Zone RV owes.
Zone RV specialises in luxury off-road caravans and its vehicles command a price tag of up to $250,000.
It is being reported that the company was actively taking orders in the days leading up to the appointment of administrators on December 1, and customers were still being urged to ‘progress payments’ until the last moment.
Zone RV specialises in the manufacture of luxury off-road caravans PIC: Dozza
The ABC reports that it understands that more than a dozen completed caravans will be delivered to owners who have paid in full. However, the broadcaster says customers who had only made partial payments were unlikely to be so lucky.
Insolvency lawyer Alison Drayton told the ABC that it would be a challenging few months ahead, with the company likely to be liquidated.
“Cor Cordis is going to continue to trade the company as best it can in the hope that the company does not have to go into liquidation,” she said. “If that lucky circumstance happens, then customers will not have to worry.”
However, she said she felt the more likely circumstance was that consumers’ money has basically been used by directors to prop up the business.
“If they have paid money to the company and they’re wanting to collect their caravans, they may not be able to do so and they may just lose that money,” Ms Drayton told the ABC. “The asset has to be dealt with by the administrator in an orderly way in the administration, so it doesn’t mean that they can just hand over that asset to a consumer …. they’ve got to work everything out in the administration and the likely thing is that assets will be sold to pay off debts.”
Gold Coast couple Sara and Magnus Charleson told the ABC they had paid almost $200,000 towards a customised off-grid Zone van.
The pair had put their house on the market and were preparing to live the grey nomad dream. But then, three days before they were due to pick up their van, they received an email from Zone RV informing them of the closure.
Ms Charleson said she was still holding onto hope.
“The brand’s just amazing and Australian-built, we wanted to support them,” she told the ABC. “We’ve paid for it. We’ve got the VIN number. In our heads, it’s ours.”
As well as leaving a long list of customers fretting about when, and if, they will either get their money back, or take delivery of the vans they have ordered, the collapse of Zone RV also left some 250 employees facing an extremely uncertain future.
Restructuring advisory firm Cor Cordis, which has been appointed Administrators, says Zone RV will continue to trade in a substantially reduced capacity.
Rahul Goyal from Cor Cordis, says it will be working to stabilise operations and explore restructuring opportunities.
“Zone RV has built a strong reputation as a leading caravan manufacturer, renowned for its innovation, design excellence and commitment to comfort, while pioneering advancements in four-wheel technology,” he said. “Our immediate priority is to assess all viable options that maximise outcomes for all stakeholders while exploring avenues for a sustainable future for the brand.”
Sadly, Zone RV is not the first Australian caravan firm to go to the wall in recent years.
Given the surging interest in the camping and caravanning lifestyle since the Covid pandemic, it can be difficult to understand why so many manufacturers appear to be struggling to stay afloat.
Apparent explanations include the increased competition of lower cost vans from overseas, particularly China; ongoing supply chain challenges; high manufacturing and labour costs; and the pressure in the marketplace for continued innovation.
The Caravan Industry Association of Australia’s Luke Chippindale says caravans built in Australia are ‘extremely high quality’ and often customised.
“It is fair to say that while the industry hit record heights during Covid recovery, the market has started to stabilise,” he told the Grey Nomads recently. “New vehicle manufacturing slowed in the 2024 calendar year by 18% … this saw 25,185 new vehicles manufactured.”
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