Staff left out of pocket when a Coolum-based caravan manufacturer collapsed could soon receive their entitlements, with liquidators confirming the business has been sold and $3.4 million in employee claims will be settled by mid-April.
Zone RV went into administration in December as it faced about $40 million in debts, but restructuring advisory firm Cor Cordis revealed last month a buyer had been secured.
The sale of Zone Manufacturing Pty Ltd and Zone RV Holdings Pty Ltd to Adventure Zone RV Pty Ltd, a company associated with Jamie Johnson of Essential Caravans, was completed with effect from March 13.
A statement from Cor Cordis said the sale proceeds would be received in two stages: about half on completion and the balance by the end of the month.
“The sale enables the Zone RV business to continue operating under new ownership, preserving the brand, core operations and its premium Australian-made offering,” it said.
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“The purchaser brings established industry experience and intends to integrate Zone RV’s product range alongside its existing caravan operations.
“All stakeholders, including suppliers, customers and former employees, are now being contacted by the new owners regarding ongoing supply arrangements, existing orders and future employment opportunities. All queries regarding the business going forward are being directed to Jamie Johnson.
“Over the coming weeks, the liquidators will finalise the administration accounts and any remaining post-completion matters to hand over the business to Adventure Zone RV Pty Ltd.
“Following receipt of the second and final payment, all outstanding employee claims (circa $3.4 million) will be settled by mid-April.”
About 240 employees were made redundant when Zone RV went into administration.
Rahul Goyal from Cor Cordis said the transaction was a positive outcome.
“At Cor Cordis, our focus is on preserving enterprise value and achieving the best possible outcomes for all stakeholders,” he said.
“The successful sale of Zone RV shows the benefits of a going-concern approach. An immediate shutdown of the business would not have delivered a return to any class of creditor.”
Investigations by the liquidators are continuing, in accordance with statutory obligations, with a further report to creditors to be issued by the end of April.
