On 1 March 2019 Lee Crosthwaite and Raj Khatri of Worrells Solvency and Forensic Accountants were appointed voluntary administrators of B J Saggers Investments Pty Ltd trading as Brisbane RVs.
The company had seen a substantial increase in competition in the caravan industry in recent years and suffered from a suspected employee fraud in excess of half a million dollars, which was only recently identified.
That now former employee has been charged by police and the first court mention held on Monday, 4 March 2019.
On 28 February 2019 the company’s secured creditor took possession of a substantial amount of the company’s stock under its floor plan finance agreement, leaving the company with little stock to trade.
Prior to the voluntary administration appointment, the company received deposits for a number of new and used caravans. The used caravans are now being held for those customers, pending payment of the balance.
The deposits paid for new caravans, approximately $550,000, are unsecured creditor claims in the administration, however these customers should promptly contact the manufacturer of the caravan direct as the manufacturers have advised that they are considering honouring those orders where possible.
The company’s total debts are in excess of $5million. The company’s secured creditor, Wells Fargo, is owed approximately $2.9million and as stated above holds a substantial amount of repossessed stock under its floor plan agreement in security for that debt. The balance of creditors is employee entitlements of $330,000 (19 employees), caravan manufacturers owed approximately $900,000, trade creditors/suppliers owed $300,000, and the Australian Taxation Office owed $150,000.
Worrells are continuing to trade the business in a reduced capacity to complete the onsite assembly of a number of caravans and campers, and to assist customers with orders and servicing.
A sale of the remaining stock of caravans is now being undertaken.
The first meeting of the creditors of the company will be held at the Worrells Brisbane office on 13 March 2019 at 10:30 am.
Worrells has 27 offices nationally and 29 partners, across Qld, NSW, ACT, Vic, SA, and WA. Worrells has been providing solvency management, insolvency administration, and forensic investigation services for over 45 years.
Partner, Worrells Brisbane