A New Zealand family’s dream of touring Australia in a luxury caravan has been thrown into turmoil after the collapse of the caravan manufacturer Zone RV. Cade and Alexis Thornton, who invested $168,000 into their dream vehicle, were devastated to learn their caravan had not even begun production and would never be delivered. The couple had sold their business, rented out their home, and booked flights to Australia, only to receive confirmation that their contract would not be honored.
“We were braced for bad news, but it was still a sickening feeling receiving the official email to say our van hadn’t even been started and our contract wouldn’t be honoured,” Ms Thornton expressed.
Zone RV’s Collapse and Its Impact
The announcement comes as administrators Cor Cordis confirmed that Zone RV, which fell into voluntary administration on December 1, is unable to fulfill its contracts. Approximately 140 families who had partially paid for luxury caravans are now left without their vehicles, with some customers losing more than $160,000 after paying up to 80 percent of the purchase price in progress payments.
“We regret to advise the company is unable to fulfil its contractual obligations to you for the manufacture and delivery of the caravan,” stated the letter from Cor Cordis, as reported by ABC.
The letters also provided contact details for support services like Lifeline and Beyond Blue, acknowledging the emotional toll on customers facing financial losses and disrupted holiday plans.
Efforts to Salvage the Situation
Administrators have confirmed that around 20 caravans have been released to customers who had already paid in full, albeit with an additional 12 percent fee to cover operational costs. Another batch of about 20 fully paid vans is expected to be completed and handed over by the end of January.
For the Thorntons, whose final payment was due before collection in February, the future remains uncertain. However, abandoning their plans is not an option. “We are trying to keep our plans alive — we have to because we have tenants moving into our house next month, so abandoning the trip isn’t really an option,” Ms Thornton stated. The family is now searching for a second-hand caravan to keep their dream alive.
Industry Challenges and Expert Opinions
Zone RV’s collapse has left around 100 customers in limbo and 250 employees without work or holiday pay just days before Christmas. The Sunshine Coast-based manufacturer owes about $42 million to hundreds of creditors.
Industry veteran David Fealy, with decades of experience in the caravan and manufacturing sectors, highlighted the broader instability within the domestic RV industry. “Right now, the RV industry in Australia is in a tougher place than most people realise,” he told Yahoo News. “Local manufacturers are being squeezed from every angle; cheaper imports on one side, soaring costs on the other, and warranty expectations that can destroy a small builder overnight.”
“What used to be a stable, proudly Australian industry is now a pressure cooker,” Fealy added.
The Human Cost and Future Prospects
The New Zealand family, having already arranged tenants for their home, booked flights to Queensland, and rented a car to travel to Townsville, now face uncertainty. Cade Thornton described the impact on his children, aged seven and nine, who were “just so excited” but are now “gutted.” He emphasized the narrow window of opportunity for their once-in-a-lifetime trip.
“It’s a once-in-a-lifetime opportunity, and if we did have to delay it, the kids get older, and they don’t want to go. So, we’ve only got a small window to do this,” he told the ABC.
The first creditors’ meeting is scheduled for Wednesday, where administrators Cor Cordis are expected to outline the full extent of Zone RV’s debts. A spokesperson for Cor Cordis stated that the firm is conducting an “urgent review” of the situation, with the primary objective of preserving value for all stakeholders, including employees, customers, and suppliers.
“Zone RV will continue to trade in a substantially reduced capacity,” the spokesperson noted.
According to Zone RV’s website, their “Australian-made caravans are optimised for safety and weight, incorporating technology from the aeronautical and marine industries to ensure they can navigate even the toughest terrains.” Their most expensive vans cost more than $250,000, adding to the gravity of the financial losses faced by customers.
The fallout from Zone RV’s collapse underscores the precarious nature of the caravan manufacturing industry in Australia, as well as the personal and financial risks faced by consumers investing in high-value products.
