Business-as-usual says Jurgens Australia

Despite a factory slow-down in recent months, Jurgens Australia says the future of the Pakenham, Victoria-based company, its workforce and production of its part South African-sourced lightweight caravans, is not in jeopardy.

In a statement on social media, Jurgens Group of Companies owner, Paul
Kyriacou, admitted there had been “significant speculation about the future of Jurgens Australia” following its South African parent company, which can trace its DNA back 60 years, being placed into provisional liquidation.

He said Jurgens South Africa was currently in the process of settlement negotiations with the party that brought matters before the courts and he was confident that the issue would be resolved “amicably” prior to going to court.

Kyriacou, who visited Australia late last week to speak to local staff and suppliers, said “we can assure concerned parties that Jurgens is operational at all production facilities in Australia and South Africa.

“We will continue to build caravans for our valued customers and are planning for a strong future.”

The issue dates back  to mid-September this year when a case against Jurgens South Africa supplier Megafreight Services (Pty) Ltd was brought to court, however the legal notice of the application was only published on December 9.

Caravancampingsales understands that the ripple effect from the case impacted some supplier confidence, which in turn led to an intermittent impact on production at Jurgens’ Pakenham production plant, where caravans are locally assembled from South African and locally-sourced components.

The South African law provides that a company can either voluntarily apply to the High Court to be liquidated, or as in this case, be forced into liquidation by its creditors or shareholders.

The court will initially grant a provisional liquidation order, which results in the company being given an opportunity to oppose it. However, should the company not oppose the order by the specified date given by the court, the court will subsequently grant an order that the provisional liquidation be made a final liquidation order. The Master of the High Court then appoints a liquidator to divest the assets of the company and pay its liabilities.

Following Megafreight Services’ application, the Pretoria High Court in South Africa therefore placed Jurgens Ci Pty Ltd in provisional liquidation and called on all interested parties "to show cause on or before 6 February 2019 why the Respondent (Jurgens) should not be placed in final liquidation…”

Paul Kyriacou last week told Jurgens Australia staff that the provisional liquidation was "old news".

“We are in negotiations regarding this issue and I do not foresee Jurgens going into final liquidation,” he said.

Jurgens Ci (Pty) Ltd is one of the largest caravan manufacturers in the southern hemisphere and has built more than 100,000 caravans since 1952.