Zone RV ran on A$20M of customer deposits while likely insolvent — 148 buyers lost out

Sunshine Coast luxury caravan maker Zone RV went into administration on 1 December 2025 owing A$42 million to hundreds of creditors, including nearly 200 customers. After rapid post-pandemic growth it reached A$90 million in annual revenue and 281 staff building 12 caravans a week, but administrators Cor Cordis say it had not made a profit since at least 2021 and had lost A$19.6 million in total, mostly in its One Composites panel division.

Cor Cordis's report to creditors says Zone RV was 'likely' trading insolvent since September 2024 and 'may have been insolvent' as early as August 2023, and that it relied heavily on customer deposits. When administrators were appointed there were 186 future orders with A$20.3 million paid in advance. It also used about A$1 million of unpaid tax as working capital, and some suppliers stopped supplying parts over unpaid invoices from 2024.

The administrators plan to report sole director David Biggar to ASIC for alleged breaches of the Corporations Act and said up to A$21 million could be claimed against him for insolvent trading. They are also probing a December 2024 loan agreement for up to A$10 million, of which only A$2 million was advanced in mid-June 2025, with about half repaid weeks before the collapse. He did not respond to the ABC's requests for comment.

A$42M owed to creditors; 148 customers who paid about A$15M stand to lose everything; administrators estimate up to A$21M claimable from the director

The report cites poor financial management, risky expansion, constant management changes and gaps in finance and operations leadership.

Zone RV relied on customer instalments to fund operations: a 5% deposit, two progress payments and a final 20% due on completion.

Workforce attrition was high, and rising inflation pushed costs above the prices customers had agreed to pay.

The One Composites panel-making division accounted for the bulk of the A$19.6 million in losses since 2021, according to the administrators.

A manufacturer that funds working capital with customers' prepayments is borrowing from its customers. When profit never arrives, the deposits are the first thing lost.

Creditors were due to vote the following week on a recommendation to liquidate. Dozens of caravans were delivered during administration, but 148 customers who had paid about A$15 million stood to lose everything, and some faced losing A$200,000. Multiple parties offered to buy parts of the business, though it was unclear whether customers would get anything. Insolvency expert Michael Sloan said the alleged misconduct was not criminal and was a matter for liquidators, not ASIC. The allegations had not been tested in court.