Motorhome company joins growing convoy into liquidation

A FAILED Brisbane motorhome company may owe as much as $4.3 million to creditors with the liquidator describing the company’s predicament as “dismal”.

Nick Combis, of Vincents, has been appointed liquidator of Slacks Creek-based The Motorhome Conversion Company in the latest sign the previous buoyant road touring sector may be struggling. Founded in 2005 by managing director John Jeffreys, the company was involved in converting imported buses into recreational vehicles. Starting with two staff members, Motorhome Conversion grew to include two factory locations and an undercover showroom.

The company had been hit by a downturn in the market and also a gas installation recall that meant it had to call in hundreds of vehicles.

Mr Jeffreys said it was not all bad news with a potential buyer interested in acquiring the company but Mr Combis said there was no offer on the table at the moment.

Mr Combis said Motorhome Conversion may owe as much as $4.3 million including sums to secured creditors and guarantees to related entities. “It is a pretty dismal state of affairs,” he said, adding there was limited value in the company’s plant and equipment.

The liquidation is the latest bad news for the Queensland recreation vehicle industry.

In March, Burpengary-based Brisbane RVS, one of Queensland’s biggest recreational vehicle dealers, called in administrators, owing an estimated $4 million.

The previous month Aussie Adventure Caravans Group, which operates in Queensland, New South Wales, Victoria and Western Australia, went into voluntary administration.