Tough times for Jurgens Australia

The gates of South African-owned Jurgens Australia may have reopened since a dramatic factory lock-out earlier this week, but the long term future of its once thriving Pakenham, Victoria manufacturing operation remains in limbo – reportedly resting on the outcome of a Victorian Supreme Court application by AL-KO International due to be heard on April 10 this year.

According to a statement issued today by Jurgens Australia director Paul Kyriacou, “We experienced a lock out by the landlord over a commercial dispute. We are pleased to advise we have resolved this issue; the gates are open and we have resumed operations.

“We acknowledge recent events have created significant uncertainty for our staff, customers, dealers and suppliers.

“We have a way to go with catching up with production to meet demand, but please be assured we are committed to making a success of our business and rebuilding confidence in our brand”.

Although many insiders say the writing was clearly on the wall for months, Jurgens Australia displayed at this year’s Victorian Caravan, Camping & Touring Supershow in late February, with stand staff reportedly taking deposits for new caravans.

As we reported in Caravancampingsales in December last year, South African company owner Kyriacou admitted there had been “significant speculation about the future of Jurgens Australia” following its South African HQ being placed into provisional liquidation.

Following a dispute with major suppliers, the Pretoria High Court in South Africa placed Jurgens Ci Pty Ltd in provisional liquidation and called on all interested parties “to show cause on or before 6 February 2019” why Jurgens) should not be placed in final liquidation.

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.

Around 50 Jurgens employees – some of whom have been with the company for more than 10 years – faced locked front gates when they returned to work on March 18, some claiming that while they were aware of the company’s on-going financial problems, they had been given no forewarning of the sudden closure.

However, a former senior employee said while it was unwelcome, it was hardly surprising news. He said that from a peak of around 44 caravans a month, Jurgens Australia had produced just 12 caravans this year before this week’s temporary closure, with losses in terms of unpaid rent mounting at the rate of $35,000 per month, adding to the company’s financial woes.

One employee reportedly told a Pakenham Star community newspaper reporter that the company owed half a million dollars in back-rent on the Pakenham premises, however it is major suspension and chassis component supplier AL-KO that appears to have pulled the pin first.

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. Jurgens Australia Pty Ltd was registered in August 2007. Initially it was based in Tooradin before moving to Pakenham around six years ago.

To try and help drive sales, Jurgens recently introduced a new glossy fibreglass Solaris touring caravan plus a new version of the South African-built off-road TuffTrax.