Zone RV Enters Liquidation: $42 Million Debt and Ongoing Investigations
Sunshine Coast-based caravan manufacturer Zone RV has entered liquidation following a creditors' vote, reporting total debts of $42 million. The company, which entered administration on December 1, has seen its assets acquired by Melbourne-based Essential Caravans, with production slated to continue at the Sunshine Coast factory. The collapse leaves numerous customers with unbuilt caravans and significant outstanding payments, as investigations into the company's former director are underway.
Company Collapse and Financial Overview
Zone RV commenced voluntary administration on December 1, with Cor Cordis appointed as administrators. Following their recommendation, creditors formally voted to liquidate the company.
Total reported debts for Zone RV stand at an estimated $42 million.
Administrators revealed that at the time of their appointment, 186 future customer orders had collectively paid $20.3 million in advance. A significant portion of these — 148 customers who had paid approximately $15 million for unbuilt caravans — are now expected to lose their funds.
Factors Contributing to the Collapse
Cor Cordis has identified several key factors that contributed to Zone RV's insolvency:
- Poor financial management.
- Risky expansion strategies.
- Frequent changes in management and periods of lacking leadership in finance and operations.
- A reliance on customer instalment payments to fund company operations.
Despite experiencing rapid post-pandemic growth, reaching $90 million in annual revenue and employing 281 staff, Zone RV recorded $19.6 million in losses since at least 2021. A substantial part of these losses was linked to its One Composites division. Additionally, high workforce attrition and rising inflation contributed to increased costs that outstripped pricing, further straining the company's financial health.
Allegations and Investigations
Cor Cordis alleges that Zone RV was likely trading insolvent since September 2024, and potentially as early as August 2023.
A report has been filed with the Australian Securities and Investments Commission (ASIC) alleging breaches of the Corporations Act by Zone RV's sole director, David Biggar. Cor Cordis states that Mr. Biggar "failed to exercise reasonable care and due diligence and failed to act in good faith by continuing to trade whilst insolvent."
Queensland Police have confirmed an ongoing investigation into a fraud complaint related to Mr. Biggar. Cor Cordis is actively considering actions such as public examinations or litigation, estimating that up to $21 million could potentially be claimed from the director for insolvent trading.
Further investigations by Cor Cordis are focusing on a loan agreement signed by Mr. Biggar in December 2024, which was intended to provide Zone RV with up to $10 million. Reports indicate that only $2 million was advanced by mid-June 2025, with approximately half of this amount reportedly repaid to Mr. Biggar weeks before the company's collapse. Mr. Biggar's employment was terminated, and he has not responded to requests for comment.
ASIC has faced criticism from affected customers for not investigating a whistleblower complaint against Zone RV prior to its collapse.
Asset Acquisition and Future Operations
Melbourne-based Essential Caravans has purchased Zone RV's assets from the liquidator, with the sale scheduled to settle on March 6. Under the terms of the acquisition, luxury vans are expected to continue to be built at Zone RV's Sunshine Coast factory.
Essential Caravans director Jamie Johnson confirmed that the acquiring business could not assume the existing customer debt. The company announced that Zone RV will discontinue its progressive payment system. New contracts will now require an industry-standard 10% deposit upon order placement, with no further progress payments required until the caravan is ready for completion.
Adrian Toft, former Zone RV chief executive, will be employed in a marketing role across the Zone RV, Essential Caravans, and Design RV brands. Mr. Toft had previously stated Zone RV was in a "strong position" when he left in June 2024, despite the company's audited financial report showing a $4.75 million loss that year.
Impact on Customers
Existing customers who had made progress payments for unbuilt caravans are not included in the acquisition deal. These customers are classified as unsecured creditors and are expected to receive only a small fraction of their money back through the liquidation process, ranking after administrators, secured creditors, and former employees.
Affected customers will be offered new caravans at cost price by Essential Caravans. This arrangement could lead to varying financial impacts; for instance, customers with a 5% deposit may see a discount, while those who paid a larger sum (e.g., $150,000 towards a $200,000 caravan) might need to pay an additional $160,000 to complete their orders.
Rahul Goyal, a Cor Cordis partner, confirmed that maintaining a skeleton staff since December allowed for the construction of over 40 vans for customers, reducing the overall creditor bill by at least $6 million. Another creditors' report is anticipated in April.