Hope for Brisbane RVs customers

One of Queensland’s best-known caravan dealerships, Brisbane RVs, is the latest member of Australia’s beleaguered recreational vehicle industry to strike trouble, going into Administration.

Lee Crosthwaite and Raj Khatri of Worrells Solvency & Forensic Accountants were appointed administrators of the long-standing family-owned business last week, with the well-known RV retailer alongside the Bruce Hwy at Burpengary understood to have debts of more than $5 million.

Worrells said Brisbane RVs had seen a substantial increase in competition in the caravan industry in recent years, but its fall into voluntary administration was hastened by a suspected employee fraud in excess of half a million dollars. This was only recently identified, with police since laying charges.

The company’s secured creditor, Wells Fargo, is owed approximately $2.9 million and has taken possession of a substantial amount of the company’s stock under its floor plan finance agreement, leaving Brisbane RVs with little stock to trade, Worrells said.

The balance of creditors is employee entitlements of $330,000 (19 employees), caravan manufacturers owed approximately $900,000, trade creditors/suppliers owed $300,000, and the Australian Taxation Office owed $150,000.

Worrells also said that prior to the voluntary administration appointment, the company received deposits for a number of new and used caravans.

The used caravans are now being held for those customers, pending payment of the balance, while deposits paid for new caravans of approximately $550,000, are unsecured creditor claims in the administration.

However Worrells is advising customers to contact the manufacturer of their caravan directly, as it's believed that most manufacturers are considering honouring those orders, where possible.

Brisbane RVs was a major agent for Paramount, Nova, Fortitude, and Golden Eagle caravans as well as Lotus, which recently announced Kratzmann Caravans in Burpengary as its new Queensland dealer.

The Queensland retailer, which usually stocks more than 50 used RVs for sale, boasted that its long partnership with manufacturers and suppliers had been a key to its past stability in an industry that along with the Australian housing market and vehicle manufacturing industry, is currently experiencing an economic downturn.

Worrells said it was continuing to trade the business in a reduced capacity to complete the onsite assembly of a number of caravans and campers and to assist customers with orders and servicing.

The first meeting of creditors will be held at the Worrells Brisbane office on March 13 at 10:30 am.

Established 15 years ago, the Brisbane RVs business incorporates Brisbane RVs in Brisbane, Burpengary and Redcliffe, Marvel Campers, Marvel RVs and Marvel Caravans and Motorhomes.

However Sunseeker Caravans of Caloundra has assured customers that its Marvel Caravans are not connected with Brisbane RVs.

Sunseeker founder Chris Michel told caravancampingsales that they allowed Brisbane RVs to use the Marvel RV name for their camper trailers, as this was a market that Sunseeker had no plans to enter.

However, he said Brisbane RVs subsequently registered Marvel as one of its business names, creating understandable confusion in the marketplace.

“I can assure our customers that Marvel Caravans are in no way affected by Brisbane RV’s misfortunes”, said Michel, who established the Sunseeker Caravans brand five years ago.

“Anyone who has placed a deposit on a Marvel with us has nothing to worry about.”