|
Avondale caravans go into administration - Update |
|
|
|
Written by markf
|
|
Wednesday, 17 September 2008 |
Sad to report that after a long topic about Avondale Caravans on the forums the rumours and general chat about Avondale closing appears now to be true
Mark Hopkins and Matthew Hammond of PricewaterhouseCoopers LLP were appointed as joint administrators to Avondale Coachcraft Limited (‘the company’), the Atherstone based designer and manufacturer of touring caravans on 16 September 2008.
Avondale Coachcraft Limited is involved in the design and manufacture of touring caravans with an annual turnover of approximately £16m and employs 149 people from its head offices in Atherstone selling its range of caravans through a network of 37 dealerships throughout the UK.
Avondale Coachcraft has experienced a drop in sales during the summer months; an issue that has affected many operators in this and associated sectors as the credit crunch has impacted consumers’ discretionary spending. The effect of the fall off in sales is that the Directors took the decision to suspend manufacturing operations at Atherstone for a short period of time until sales levels increased. Unfortunately, this has not proven to be the case leading to Avondale Coachcraft being placed into administration by its directors.
Mark Hopkins, joint administrator and director, PricewaterhouseCoopers LLP said:
“The administrators are reviewing the position at the company in respect of the caravans that are presently part built and are hopeful of recommencing trading so that the caravans can be completed. The extent to which we are successful in being able to complete the work in progress will be dependant upon the support of employees and suppliers with whom discussions are taking place”.
“The lack of working capital available to the company and the fact that only existing work in progress is being completed in the short term means that only those employees required to complete the work in progress and assist the administrators with caravan sales and possible sale of business will be retained; regrettably, we have been forced to make the remainder of the employees redundant.”
Matthew Hammond, joint administrator and partner, PricewaterhouseCoopers LLP said:
“Although the company experienced a downturn in the level of sales orders and had been forced to suspend manufacturing, the company owns the design rights to a number of new models which together with its existing range of models means that it may be attractive to a purchaser. We are in discussion with a number of parties who have expressed an initial interest in acquiring the business.”
“The other key thing to bear in mind is that the administration process is limited to the caravan manufacturing operations of Avondale Coachcraft, the other companies in the group continue to trade normally”
Update 15/10/08
Below is a quote from our forums today from the Avondale dealer Read Caravans:
"The administrators have written to us saying politely to bugger off regarding tens of thousands of pounds owed by avondale for previous warranty work over the last 18mths. they have also informed us that there is no warranty from avondale for any customers, because it was factory backed and not insurance underwritten.
They are also selling off equipment and machinery so i would say there is NO posibilty of avondale comming back and NO warranties will be honoured.
I'm sorry if this sounds abrupt, but i am P****d off with the whole situation and the underhanded way that avondale have shafted everyone, customers and dealers alike. I just want to put customers in the picture because a lot of dealers are skirting round the issue."
|
|
Last Updated ( Saturday, 18 October 2008 )
|
Touring and Tenting is a Community based website for caravanners and campers. The site is designed to enable caravanners and campers and members of Touring and Tenting to interact with all areas of it. If you love caravanning and camping you will love our Social Networking site.
We welcome all owners of Touring caravans,motorhomes,tents,trailer tents and R.Vs big and small
Subscribe to this comment's feed
