The collapse of yet another Australian caravan manufacturer has highlighted once again a worrying trend that appears to be is picking up pace.
Victorian company Essential Caravans, has announced that it has entered voluntary administration, and appointed Paul A. Allen and Glenn J. Franklin of PKF Melbourne as administrators.
In a statement, Essential said its primary focus during ‘this transition remains on its valued customers, dealer network, and order fulfilment’.
“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 said. “It is the intention that all current orders will be fulfilled.”
Another caravan manufacturer has gone into administration. PIC: RDNE Stock
Essential Caravans has reportedly been running for more than 35 years, employs more than 200 people, and has built more than 5000 caravans since 2015.
It is not the first well established caravan firm to run into trouble though.
Just last month, Maverick Campers and Caravans abruptly went into liquidation. And a few weeks before that, Australian Off Road (AOR) went into administration, citing price pressure from increasingly sophisticated Chinese imports as a major factor.
Other Australian caravan firms to run into trouble in recent months include Network RV – which owns Vancraft, Nextgen, and Victory brands, as well as three Fair Dinkum Caravan dealerships – which went into administration in June.
And the same month, another Victorian caravan maker, Ourgen RV, was also ordered into liquidation by the state’s Supreme Court.
Last year, Queensland-based Zone RV went into administration, with many customers losing significant amounts of money but – ironically – it resumed production after being bought by Adventure Zone RV Pty Limited, a company led by Jamie Johnson, the director of Essential Caravans.
The overlap has forced Zone RV to issue a recent statement reassuring customers it was not impacted by Essential entering administration.
“Zone RV is owned and run by Adventure Zone RV, a separate company with its own shareholders. Neither of our directors holds any role at Essential,” it said. “Essential’s administration doesn’t change our plans, and we’re building, delivering and taking orders as normal.”
Nonetheless, the whole situation cannot be anything other than unsettling for customers.
Earlier this month, the CEO of Caravan Industry Association of Australia (CIAA) Stuart Lamont, said the industry as a whole was very conscious of consumer wariness.
“The CIAA is working to introduce a consumer deposit insurance scheme which we are hoping to get up and running in the next few months,” he said. “There is a lot to it, but it’s something that would add some protection for consumers who have paid a deposit for a van.”
And, while Mr Lamont acknowledged there were challenges for the industry, he insisted the sector’s future was still bright.
“Of course, we have high fuel prices, interest rates going up, housing valuations going down, and growing cost of living pressures which has all added up to a very negative media cycle,” he said. “Yes, everybody ‘needs’ a car but ‘wants’ a caravan … but the fact is desirability is still high.”
Are you a Grey Nomad member yet? Click here to find out about the discounts, competitions and other benefits on offer.
