Paradise Motor Homes collapse leaves retirees devastated

Retirees are out of pocket by up to $220,000 each after the collapse of Gold Coast-based motorhome company. These are their stories.

RETIREES who hoped to spend their twilight years travelling the country in luxury caravans are instead out of pocket by up to $220,000 each after the collapse of Gold Coast-based Paradise Motor Homes.

Annette and Glenn Jarman, who are listed in a liquidator’s report as being owed just over $200,000 by the company’s NSW arm, were due to pick up their motorhome on October 20. Instead they arrived at the company’s Yatala factory to find the company was no longer trading.

“My husband Glenn and I were shattered when we arrived at the Paradise facility to find the gates shut and that they had gone into administration,” Ms Jarman said in a social media post.

“We are devastated that our hopes and dreams have been taken away.”

Sydney business owner Terry Ghataora said he and wife Hardeep were down $120,000 on a ‘Pinnacle’ caravan they had ordered from the company.

“I’m 67. I have my own business. I was planning for retirement by 70,” Mr Ghataora told the Bulletin. “I wanted to get the caravan now to get going with it and gradually drift into retirement.”

The motor home that Annette and Glenn Jarman were expecting to receive from Paradise Motor Homes.

Administrators were appointed to Paradise Motor Homes (QLD), Paradise Motor Homes (NSW) and PMH Manufacturing on October 12.

Mr Ghataora said while the news was devastating, he had feared there were problems at the company for some time.

He said that in the months before the company’s collapse director Shannon Burford had stopped responding to messages asking about the progress of his caravan.

“I was getting reports like Mr Burford is not available because he’s at a Directors sleep-out to raise awareness for the homeless, or he’s in a meeting, we’ve sent an email for him to respond to you,” Mr Ghataora said.

“But I never heard from the guy. This went on for months.

“There was nobody to speak with and nobody answered back.”

Terry Ghataora with a RAM vehicle he purchased to tow his caravan.

Mr Ghataora said he feared the worst when he noticed a decline in the company’s social media activity.

“What alarmed me was every time someone came to collect one (a caravan or motorhome) it was on the Facebook page. But suddenly I was only seeing one every couple of months and I thought, this is not good,” he said.

“I contacted the salesman. I asked if Paradise Motor Homes was in trouble. He laughed at me over the phone and said our order books are full, the supply issues were improving and there’s no problem here. That’s what they told me.”

Mr Ghataora said he was “kicking himself” after choosing Paradise Motor Homes over a Sunshine Coast manufacturer last year because they said they had a slot available and were “extremely confident” they could have his caravan to him by September 2021.

He said he had purchased a Ram Truck, delivered last month, to tow the caravan he may now never receive and wanted others to be aware of the potential pitfalls before handing companies hefty deposits.

Shannon Burford, director of Paradise Motor Homes.

Shannon Charles Burford, 47, of Hope Island, is sole director of Paradise Motor Homes (NSW), Paradise Motor Homes (Qld) and PMH Manufacturing, which all went into administration on October 12.

The Bulletin has attempted to contact Mr Burford.

Barry Wright and Jason Tang, of Cor Cordis, were appointed voluntary administrators.

Shares in the companies are all held by another company, Genna Veru, of which Mr Burford is sole director and joint shareholder with Josephine Burford.

It was the second time in five years the business had gone bust – it was placed in receivership in 2017 before finding its new owners, who opened a Sydney showroom in 2020.

Last year, the company moved into a new factory at Yatala.

The Paradise Motor Homes premises in Yatala. Picture: Richard Gosling.

The Paradise Motor Homes premises in Yatala. Picture: Richard Gosling.

The original business was launched in 2002 by Colin MacLean with a model called the Castaway and within three years was manufacturing five models.

Caravans ranged in price from $159,000 to more than $500,000 for the most expensive. PMH in a statement has said administrators were undertaking an urgent review of the business, with a view to finding new investors for the company.

Customers who had paid a deposit towards a recreational vehicle would be treated as a creditor in the administration process.

“The administrators will be assessing each customer project and will contact them shortly in due course to discuss the status,” the company said.

Comment was sought from both the company and the administrators.

The troubles for Paradise Motor Homes come despite the Covid-19 pandemic fuelling an incredible growth in caravan sales and ownership. There’s been a 275 per cent increase in the number of new recreational vehicles, including caravans, campervans, camper trailers and motorhomes, registered in Queensland in recent years.

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Originally published as Paradise Motor Homes collapse leaves retirees devastated