Embattled caravan manufacturer collapses into administration - ABC News & Headlines – Australian Broadcasting Corporation
There was no movement at AOR's Caloundra base on Monday. (ABC Sunshine Coast: Josh Dye)
Queensland caravan manufacturer Australian Off Road has collapsed into voluntary administration.
The company went dark last week, leaving customers and suppliers in limbo.
Customers and other creditors will wait to see whether the company can be rescued or whether it will be liquidated.
Embattled Queensland caravan manufacturer Australian Off Road (AOR) has collapsed into administration weeks after spruiking a bonus deal to entice new customers.
The company, based on the Sunshine Coast, suddenly went offline last week when it disconnected phones, pulled its website and locked the factory's gates.
The unexplained closure caused days of speculation that left suppliers, customers and other stakeholders in the dark.
The company, which had about 100 employees, re-instated its Facebook page to post a statement on Tuesday afternoon confirming it had entered administration after 26 years.
Founder and co-director Steve Budden blamed competitors copying his designs and the increase in wages for the company's demise.
The ABC understands customers have not heard from the company since last week. (ABC Sunshine Coast: Josh Dye)
"Unfortunately, the manufacturing environment has changed dramatically," Mr Budden said in a statement.
"Competing against imported products on price, while also facing competitors with substantially lower manufacturing overheads, has made it increasingly difficult to sustain the business in its existing form."
Mr Budden said AOR's closure was "the end of a significant chapter in Australian recreational vehicle manufacturing".
Australian Off Road offered customers a bonus offer if they ordered a new van in August. (Supplied: Australian Off Road)
The company, which was legally called Rhost Pty Ltd, has appointed Nick Keramos and Bill Karageozis from DVT Mcleods as administrators.
Last month the company offered new customers a bonus package with more than $9,000 of extras to entice new purchases for delivery in early 2027.
"Now is the perfect time to secure your place for the 2027 travel season," the online ad said.
The ABC has attempted to contact the company's directors.
Steve Budden spoke about the company's humble beginnings on a video on its YouTube account. (Supplied)
Mr Budden has previously spoken about how he established AOR from humble beginnings in 2000.
"I started in my carport in Maleny with a $5,000 credit card, so I was pretty broke," he said in a Youtube video the company posted last year.
"We read books on marketing and sales and taught ourselves how to sell to people.
"We had no money to advertise so we decided to do it on the cheap and we'd go camping with the customers. They'd tell us what they wanted so we'd innovate and make the trailers.
"We've got our problems … particularly in supply, costs of parts. We're forever being challenged by our competitors.
Ron and Winsome Vernieux raced nearly 2,000 kilometres to retrieve their caravan which was in for repairs. (ABC Sunshine Coast: Josh Dye)
"We have extremely good warranty, we look after our people, we've got amazing customers."
Owners who had their caravans in for repairs were among those left in the dark in recent days.
Ron and Winsome Vernieux drove nearly 2,000 kilometres from regional Victoria to retrieve their caravan from AOR.
It was being repaired, but they were worried it might get caught up in the company's collapse.
They were able to collect it on Tuesday morning.
In another video posted to AOR's Youtube account in June last year, fellow AOR director Russell Evans described some of the challenges the company was facing.
"There's a lot of work with suppliers these days because the nature of the business is becoming more expensive," Mr Evans said.
"The planning of the future of the company has become more intense to be able to make sure that we're positioning ourselves well for the future.
Russell Evans speaks in a video posted on the company's Youtube channel last year. (Supplied)
He said the company's best attributes were its staff and "dedicated" customer base.
"They're [customers] very committed to their product and to the company, and it's things sometimes that you don't see in other companies," he said.
"They tell you when you're doing a good job but they also very, very clearly tell you when you're not doing a good job."
Caravanning Queensland CEO Jason Plant said it was "never a good thing" to hear of company closures and he felt for the people involved.
AOR's collapse comes after another Sunshine Coast caravan manufacturer, Zone RV, was liquidated earlier this year.
"Overwhelmingly the industry is still performing strongly and that's a sign that we see through recent events that we've run, caravan shows, the products that are being sold," Mr Plant said.
Jason Plant says many caravan companies are still thriving despite challenging conditions. (ABC News: Erin Byrnes)
He said the COVID pandemic resulted in an "explosion" in the recreational vehicle business.
"We saw unprecedented growth in the industry through that period and a lot of people jumped in and I think what we're seeing now is a normalisation," Mr Plant said.
"We're heading back to a period of trading that's more alike to 2019 rather than through those frenzied buying years where dealers and manufacturers were struggling to keep up with the demand."


