A major Australian luxury caravan manufacturer has entered administration owing an estimated $40 million, leaving hundreds of customers and employees facing an uncertain future.
Zone Manufacturing Pty Ltd, known for building high-end caravans under the Zone RV brand, collapsed suddenly last week, resulting in the loss of about 240 jobs and disruption for around 180 customers who had already paid large sums toward their vans.
According to an article by ABC News, the Sunshine Coast company continued accepting payments until just hours before shutting down, compounding the financial shock for many affected buyers.
During the first online creditors’ meeting on Wednesday, administrators Cor Cordis revealed the scale of Zone RV’s financial crisis.
Customers are owed roughly $18 million, suppliers up to $20 million, and employee entitlements total about $4 million.
Unpaid taxes add a further $1.4 million to the company’s liabilities. Cor Cordis partner Rahul Goyal told the approximately 250 creditors who joined the meeting that investigations were still underway. “It’s unusual for a business of this size to owe this amount of money,” he said.
Zone RV recorded annual turnover of about $70 million, but Goyal warned that unsecured creditors — including most customers and suppliers — are unlikely to recover funds if the company is liquidated.
“If the company were to be liquidated, the chances of getting anything are quite remote,” he said.
Around a dozen caravans are still on the factory grounds in Coolum, some marked “complete,” and approximately 30–40 employees remain onsite.
Security around the facility has been tightened with new CCTV to protect the remaining assets.
Goyal said a small group of customers who had made their final payments had the strongest chance of receiving their vans.
“I want them all out by the end of next week, the ones that are fully completed,” he said. But he added that for most other buyers, the situation was grim.
“If you’ve made first and second payments, your caravan is unlikely to be in a production line anywhere,” he said. “If you’ve made a third payment, it may or may not be in production.”
Among those affected are Sara and Magnus Charleson, who paid nearly $200,000 for a custom van they planned to use for travelling Australia.
Seeing their completed caravan behind a locked gate brought mixed relief and heartbreak. “I cried the first time I saw it in the showroom, and just seeing it then I cried as well,” Ms Charleson said.
Brock and Melina Merrion, FIFO workers from Mount Isa, were preparing to collect their caravan this week but now find themselves without a place to live after renting out their Gold Coast home.
“We’re absolutely gutted, it’s unexplainable,” Ms Merrion said. “We’ve got nothing now, absolutely nothing.”
Financial reports obtained by the ABC show that Zone RV had been under strain for at least 18 months.
The company reported a $4.75 million loss in 2023–24 and held net liabilities of $10.8 million.
Auditors had already raised concerns about the company’s ability to continue operating, citing cash shortages and the need for new capital.
The business was holding $16.3 million in customer deposits and progress payments, while director David Biggar and key management received more than $888,000 in compensation during the same period. Biggar, who operates multiple other companies, could not be reached for comment.
This news highlights how the collapse of a major caravan manufacturer can disrupt travel plans, strain consumer trust, and impact the broader outdoor recreation sector that depends on reliable RV production and delivery.