Sunshine Coast-based luxury caravan manufacturer Zone RV has entered liquidation following a vote by creditors, with reported debts totaling $42 million. The company, which entered administration on December 1, faces allegations of insolvent trading, and its sole director, David Biggar, is subject to investigations by administrators, ASIC, and Queensland Police regarding his conduct and the company's financial practices.
Company Collapse and Financial Overview
Zone RV entered voluntary administration on December 1, owing approximately $42 million to hundreds of creditors, including nearly 200 customers. A report by administrators Cor Cordis indicates that the company was likely trading insolvent since September 2024, and potentially as early as August 2023. Creditors have formally voted to liquidate the company, aligning with the recommendation from Cor Cordis.
Approximately 148 customers who had paid an estimated $15 million in advance for unconstructed caravans are expected to lose their funds. While 186 future customer orders initially involved $20.3 million in advance payments, some caravans were delivered. Cor Cordis partners have stated that a potential sale of the company's assets is imminent, which might enable a prospective buyer to complete existing caravan orders, possibly with additional fees for customers. Secured creditors, such as banks and employees, receive priority for any proceeds from the liquidation process.
Identified Causes of Collapse
Cor Cordis identified several factors contributing to Zone RV's financial difficulties and subsequent collapse:
- Poor financial management.
- Risky expansion strategies.
- Frequent management changes and leadership gaps in finance and operations.
- Reliance on customer instalment payments for funding operations.
The company experienced rapid growth post-pandemic, reaching $90 million in annual revenue and employing 281 staff. However, it recorded $19.6 million in losses since at least 2021, with significant losses linked to its One Composites division. High workforce attrition and rising inflation also contributed to increased costs that outstripped pricing.
Investigations and Allegations Against Director
Investigations are underway into the conduct of Zone RV's sole director, David Biggar. Cor Cordis plans to file a report with ASIC, alleging that Mr. Biggar breached the Corporations Act by failing to exercise reasonable care and due diligence and failing to act in good faith by continuing to trade while insolvent. Cor Cordis is considering public examinations or litigation to seek compensation for creditors, estimating up to $21 million could be claimed from the director for insolvent trading.
Separately, Queensland Police have confirmed an ongoing investigation into a fraud complaint related to Mr. Biggar.
Cor Cordis is also investigating a loan agreement signed by Mr. Biggar in December 2024, intended to provide Zone RV with up to $10 million. Only $2 million was advanced by mid-June 2025, and about half of this amount was repaid to Mr. Biggar weeks before the company's collapse. This circumstance has raised questions regarding his representations to external auditors.
Mr. Biggar's employment was terminated, and he has not responded to requests for comment. Customers have criticized ASIC for not investigating an earlier whistleblower complaint against Zone RV. Insolvency expert Michael Sloan noted that while the report's allegations against the director are serious, they are not criminal in nature and primarily fall to the liquidators to pursue.
Future Outlook
Multiple parties have expressed interest in acquiring parts of Zone RV. With the company now in liquidation, the focus will shift to the sale of assets and the pursuit of claims to recover funds for creditors.