Motorhome firm leaves $4m trail of debt
A LIQUIDATOR has called on the consumer watchdog to investigate the collapse of a Brisbane motorhome company that has left a $4 million trail of debt.
Vincents liquidator Nick Combis has asked the Office of Fair Trading to look at potential breaches of the law by Slacks Creek-based The Motorhome Conversion Company after people allegedly consigning motorhomes to be sold by the company did not receive full payment.
The Motorhome Conversion Company collapsed in July in the latest sign of growing trouble for the road-touring sector.
Founded in 2005 by managing director John Jeffreys, the company originally sold completed motorhomes that were directly imported from Japan.
Mr Jeffreys, who later decided to import empty buses and design and build the interiors, told News Corp in July that the business took a turn for the worse when it was subjected to an industry-wide recall of vehicles to check gas systems.
Vincents’ Mr Combis said his investigation had confirmed that a number of converted motor vehicles given to the company on consignment and subject to a security agreement were allegedly sold to third parties without proper payment being made.
“I have referred potential breaches of the Motor Dealers and Chattel Auctioneers Act by the company and/or director to the Office of Fair Trading,” Mr Vincent said in a report to creditors. “I am yet to receive a response.”
The Office of Fair Trading said it assessed all complaints received and if a possible breach was indicated, the issue would be referred for investigation. It declined to confirm it was investigating the firm.
Mr Combis said Mr Jeffreys told him trading losses were behind the company’s failure.