Newly uncovered documents show the corporate regulator was alerted to serious financial problems at a Sunshine Coast caravan manufacturer months before it collapsed, leaving customers fearing massive losses just weeks before Christmas.
Whistleblower Alert Ignored
Australian Securities & Investments Commission (ASIC) received an official complaint in September alleging that Zone RV in Coolum Beach was trading while insolvent. The whistleblower, whose identity remains confidential, provided information to the regulator detailing the company's precarious financial position.
Despite this warning, ASIC initially decided against taking action, responding that it had "determined not to take any further action at this time." The concerned whistleblower followed up with the regulator again in October and November, urging them to reconsider.
It wasn't until November 17 that ASIC indicated it was reviewing its original assessment of Zone RV. This was just weeks before the company was placed into voluntary administration on Monday, devastating customers who had paid large deposits.
Customers Left Devastated Before Holidays
The collapse has left numerous customers facing financial ruin, with some reporting losses in the hundreds of thousands of dollars. Staff were called into a meeting and informed of the administration news.
Natalie Webb and her husband Steve handed over $70,000 to Zone RV and had planned a holiday in their new caravan. "(Steve's) had two bouts of cancer and we just basically live scan to scan, so we were very excited to get our new van and head off," Ms Webb told 7NEWS.
Other customers have reported even more significant losses. One revealed they were $150,000 out of pocket, while another, Jason Humphreys, said he had paid his final instalment of $190,000 just hours before the administration news broke on Monday.
"I'm gutted, I'm angry, I'm pissed off. It's wrong. If they knew they were in this bad a shape, they shouldn't have taken the money," Mr Humphreys said.
Administrators Seek 'Sustainable Future'
Administrator Rahul Goyal from Cor Cordis has been appointed to manage the company's affairs. His immediate priority is assessing Zone RV's financial position to determine what is owed to approximately 250 employees, along with customers and suppliers.
"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," Mr Goyal stated.
The company has been permitted to continue trading at a reduced capacity for now as administrators work through the complex situation. The focus will be on determining whether any part of the business can be salvaged or if assets must be sold to repay creditors.
The collapse serves as a stark reminder for consumers making large purchases from companies, particularly before major holidays like Christmas, and raises questions about regulatory responsiveness to early warnings of corporate insolvency.
