A major Queensland caravan manufacturer has collapsed, leaving hundreds of customers in financial limbo and sparking serious allegations of prolonged insolvent trading. Zone Manufacturing Pty Ltd, which operated as Zone RV from its Coolum Beach base on the Sunshine Coast, entered voluntary administration earlier this month.
Financial Ruin and Customer Anguish
The collapse has impacted approximately 200 customers who paid deposits, alongside hundreds of now-jobless staff. A recent creditors' meeting laid bare the staggering financial shortfall: customers are collectively owed around $18 million, suppliers are out of pocket about $20 million, and employee entitlements total roughly $4 million.
For many customers, the news was a devastating blow after committing significant sums, often exceeding $150,000, for their dream caravans. They were unaware of the company's dire financial position until it was too late. The experience has been described as gut-wrenching and deeply stressful for those left wondering if they would ever see their money or their vehicle.
Allegations of Years of Insolvent Trading
While the public collapse was sudden, a former executive claims the warning signs were flashing for years. Former chief financial officer Kim Hodgkins alleges the company's leadership was "knowingly trading insolvent" for more than two years before its final demise.
Hodgkins states she first raised concerns when the company's debt was at negative $4 million two years ago. That red ink reportedly ballooned to a staggering $40 million by the time administrators were called in. She asserts the company's directors and CEO need to be held accountable for their actions. 7NEWS sought comment from Director David Biggar and CEO Brett Hooker, but received no response.
A Glimmer of Hope for Some Owners
In a small piece of positive news, a select group of customers were finally able to drive away with their caravans recently. The administrators permitted the release of the final 20 caravans that were on the production line. However, this relief came at an additional cost, with customers required to pay an extra 11 per cent fee to collect their already-paid-for vehicles.
Those who successfully collected their vans expressed a mix of exhaustion and profound relief, happy to finally conclude their lengthy and uncertain ordeal. For the majority, however, the future remains unclear as the administration process unfolds, determining what, if any, funds can be recovered for creditors and employees.
