Melbourne's Network RV enters voluntary administration
Struggling 12 year-old caravan manufacturer and retailer faces uncertain futureOnce one of Australia's fastest-growing caravan manufacturers, Melbourne-based Network RV, has entered voluntary administration.
The Epping, Victoria-based caravan and chassis builder last week appointed Fabian Kane Micheletto and David Stimpson of SV Partners as voluntary administrators of the Network RV group companies, which include Network RV Pty Ltd, Network Engineering Pty Ltd and Fair Dinkum Caravans Pty Ltd.
According to reports the embattled manufacturer owes $30 million, including $12 million to trade creditors, $3 million to the ATO, around $10 million to a financier and $1.5 million in employee entitlements.
The administrators are looking to sell the various assets, including three dealerships, and 129 complete and 18 incomplete 'vans.
Also read: Great Aussie Caravans goes into liquidation
Network RV was established in 2014 by businessman Joe Markovic and moved into a new head office and larger 10,000 square metre factory in Melbourne's northern suburbs in 2022.
Initially focused on the more affordable end of the large caravan market, it's produced a wide range of caravans under various brand names over the years, including NextGen, Roadhouse, Elite, and Victory.
More recently it introduced a more upmarket line of VanCraft 'vans as well as new Gibb River off-road composite models which were largely made in China.
Network Engineering manufactures caravan chassis while the retail arm, Fair Dinkum Caravans operates a network of dealers around Australia.
Network RV has also set up other associated businesses, some of which no longer exist, including the Network RV Caravan Solutions repair centre and Caravan Transport Solutions.
The Melbourne manufacturer was also in the news earlier this year when its former Chief Operating Officer Jim Moutsias took the company to the Fair Work Commission for an unfair dismissal claim.
Seeking investors
According to a media statement from SV Partners, "the administrators have immediately commenced an urgent assessment of the financial position, operations and viability of each of the companies".
"This review will include an assessment of the companies’ ongoing trading position, customer orders and commitments, inventory, manufacturing capability and stakeholder interests," SV Partners continued.
"As part of the administration process, the administrators intend to explore all available restructuring and recapitalisation opportunities with the objective of maximising returns to creditors and preserving value in the underlying businesses.
"This process is expected to include: seeking expressions of interest from strategic and financial investors; investigating a potential trade sale of some or all of the businesses and assets; and considering proposals for a Deed of Company Arrangement (DOCA) to facilitate a recapitalisation and restructuring of the companies."
Interested parties should contact SV Partners on 03 9669 1100 or via network@svp.com.au
Related: Gibb River makes a splash at Sydney Supershow
Related: VanCraft boosts Network RV fleet
Related: New Network RV factory opens
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