A north-western Sydney caravan retailer has collapsed into liquidation owing creditors $2.15m – the latest casualty in a string of failures across the under pressure caravan industry.
Mell Associates, which trades as Parravans Caravan World, was a Windsor-based caravan dealer for more than 60 years and offered Australian-made custom caravans.
Liquidator Lindsay Bainbridge was appointed by the Federal Court on June 19 and it is understood the company owes $2.15m to 55 unsecured creditors.
Early investigations by Mr Bainbridge suggest the company failed after expanding too rapidly during the Covid pandemic, leaving it unable to sustain operations once international borders reopened.
“Parravans Caravan World enjoyed the increase in domestic travel demand during and immediately after COVID-19 international restrictions,” Mr Bainbridge said.
“An expansion when interest rates were lower, caused difficulties later as the heat in the domestic travel market eased and interest rates increased.”
Mr Bainbridge said Parravans Caravan World left its major Windsor sale yard in March, forcing the redundancy of its sales force.
“This largely restricted its operations to sale via expos and trade shows as well as continuing its caravan repair business,” he said.
Along with its debts to unsecured creditors, the company also owes $283,431 to employees’ superannuation and $96,552 worth of employee entitlements.
Mell Associates has paid back two creditors $1.81m, Mr Bainbridge said.
The failure comes as Australia’s caravan industry has been rocked by multiple collapses in recent years, including Network RV, Great Aussie Caravans, Ourgen RV, Tango Caravans, Highline Caravans, Infinity Motorhomes, Boss Adventure and Hitch & Go, along with Paradise Motorhomes.
Soaring taxes and crippling operational costs have forced some of the companies to the wall.
While some brands have been saved by new owners and continued on as normal, millions of dollars has been lost to creditors.
Parravans Caravan World’s director Stephen Edwards has been contacted for comment.
Savannah.pocock@news.com.au