Zone RV creditor debt ballooned to about $40 million as the luxury caravan maker collapsed
Zone Manufacturing Pty Ltd, best known for its premium Zone RV caravans, slid into administration last week, leaving around 240 staff unemployed and about 180 customers in limbo. The Sunshine Coast company continued taking customers’ money up until the final hours before its shutdown.
At the first online creditors’ meeting held on Wednesday, administrator Cor Cordis laid bare the scale of Zone RV’s financial distress. Estimates show about $18 million owed to customers, up to $20 million to suppliers, $4 million in employee entitlements, and around $1.4 million in unpaid taxes to be funded by the taxpayer.
Cor Cordis partner Rahul Goyal told roughly 250 individual creditors who attended the session that the team was still investigating how Zone RV ended up in such a predicament. “It’s unusual for a business of this size to owe this amount,” he remarked.
Creditors remain in limbo
Zone RV reported roughly $70 million in annual turnover, but Goyal painted a bleak outlook for unsecured creditors, including suppliers and customers. “If the company were to be liquidated, the chances of getting anything are quite remote,” he warned.
Inside Zone RV’s Coolum factory, about a dozen caravans sat in the yard, many with “complete” signs. While most of the 280 employees have been laid off, 30–40 workers remain, some of whom are continuing work on vans.
Security has been tightened around the premises, with a large CCTV camera installed at the gate to protect remaining assets.
There is a glimmer of hope for a small group of customers who had already paid their final instalments, as many of their vans are finished or near completion. “I want them all out by the end of next week, the ones that are fully completed,” Goyal stated.
For the broader customer base, the outlook is far less clear. “If you’ve made first and second payments, your caravan is unlikely to be in a production line anywhere,” he explained. “If you’ve made a third payment, it may or may not be in production.” Overall, about 180 customers have varying levels of claims, from $15,000 deposits to as much as $270,000.
Financial troubles laid bare
The Australian Broadcasting Corporation (ABC) obtained Zone RV’s latest annual report, revealing significant financial stress as far back as 18 months ago. The audited figures show a $4.75 million loss for the 2023–24 year, with net liabilities of $10.8 million. Auditors cautioned that the company’s ability to continue as a going concern depended on current cash funding and the prospect of additional capital or other financing, creating material uncertainty about Zone RV’s future.
In June 2023, Zone RV posted revenue of $77 million and a wage bill of $4.6 million, while holding only $2.4 million in cash. The company owed about $400,000 in leave and superannuation entitlements to employees and carried $16.3 million in customer deposits and progress payments for caravans yet to be delivered. No dividends were paid in 2023–24 to shareholders, including director David Biggar, while Biggar and other key personnel were paid $888,219 for the year.
Documents from the Australian Securities and Investments Commission describe Biggar as a director of at least ten companies. The ABC attempted to contact him at his registered address on Tuesday but found no one at home, leaving questions about leadership and oversight in the spotlight.
