Couple left homeless after selling their house and paying $260k to collapsed Gold Coast company Paradise Motor Homes

A couple who lost $260,000 in the $10m Paradise Motor Homes collapse had retired and sold their house to live in their new luxury home on wheels. Here’s their devastating story

A couple who lost $260,000 in the $10m Paradise Motor Homes collapse had retired and sold their house to live in their new luxury home on wheels.

Now they’re house sitting to keep a roof over their heads and living out of boxes.

The couple, who are yet to tell friends and family what’s happened to them, paid the deposit on their dream motorhome, and sold their house in January after being promised it would be ready by May.

That deadline was then pushed out to October.

Administrators Barry Wright and Jason Tang, of Cor Cordis were appointed to Paradise Motor Homes (QLD), Paradise Motor Homes (NSW) and PMH Manufacturing on October 12.

Another couple, Annette and Glenn Jarman were expecting to receive this van from Paradise Motor Homes. They never did.

Six months and $260,000 after they were promised their vehicle, the couple have been left virtually penniless, with little prospect of recouping their hard-earned cash.

“That’s our life savings, we don’t have anything else,” the tearful woman said.

“We’ve retired, I just stopped work, we don’t have a home now, we’re homeless.

“I’m just praying to God that He has another plan for us.”

The couple had planned to live in the motorhome, travelling to visit their grandchildren in North Queensland and visiting all the places they’d dreamt of during their long careers.

“We’ve been house sitting since August, and we found out about this at our first house-sit,” she said.

“We’re living out of boxes and a car.

“We went and saw (Paradise management) in August and spoke again in September, and there was no mention of any problems.

“I don’t know how they sleep.

“I just want to know where the money’s gone.”

Paradise Motor Homes in Yatala has collapsed. Picture: Richard Gosling

Among those owed money are dozens of retirees and couples owed six-figure sums, including one man owed $400,000.

The Australian Taxation Office claims it’s owed $2.4m across two of the companies, while suppliers are also out of pocket – including a Coolangatta business claiming it’s owed $530,000.

While 43 customers paid deposits to the Paradise Qld sales company, they have been told the cash held by Paradise Qld “did not reflect the deposits paid”.

Administrator Jason Tang said his preliminary investigations suggested “evidence of insolvent trading”.

No cash, no assets: the ruins of Paradise Motor Homes

November 10, 2022: A fleet of luxury motor homes, once destined to fulfil the travel dreams of excited grey nomads, will instead be auctioned to the highest bidders as victims are left to count the costs of the Paradise Motor Homes collapse.

Some creditors of the failed Gold Coast companies, together owed more than $6m, have been told their only remaining material asset was a customer database, with client deposits nowhere to be found in company bank accounts.

Among those owed money are dozens of retirees and couples owed six-figure sums, including one man owed $400,000.

Twelve couples are owed $200,000 or more, while another 16 are owed between $10,000-$40,000 each.

Most of the creditors of Paradise Motor Homes are seniors owed up to $400,000 each.

Administrators Barry Wright and Jason Tang, of Cor Cordis were appointed to Paradise Motor Homes (QLD), Paradise Motor Homes (NSW) and PMH Manufacturing on October 12.

The Australian Taxation Office claims it’s owed $2.4m across two of the companies, while suppliers are also out of pocket – including a Coolangatta business claiming it’s owed $530,000.

Administrators advertised the sale of the business as a “going concern” in an expressions of interest campaign that ended last week.

The Gold Coast Bulletin has contacted administrators for an update on the sales campaign.

Paradise Motor Homes last week.

Creditors at their first meeting were told Paradise’s 30 staff had been terminated on October 12 but that administrators had contracted six former staff members so they could continue to trade the company’s vehicle servicing business.

While 43 customers paid deposits to the Paradise Qld sales company, they have been told the group’s assets were held by related company PMH Manufacturing.

They were told the balance of cash held by Paradise Qld “did not reflect the deposits paid”.

Lloyd’s Auctions have been contracted to provide valuations for the PMH assets and to prepare them for auction.

Creditors were told some of the assets held by PMH were secured by unspecified third parties for unknown amounts.

Under questioning from the lawyer of a couple owed $260,000, administrator Mr Tang said his preliminary investigations suggested “evidence of insolvent trading”.

Shannon Charles Burford, 47, of Hope Island, is sole director of all three Paradise Motor Home companies.

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.

Shannon Burford, director of Paradise Motor Homes.

Mr Burford is listed in the administration documents as a creditor of the Qld company, claiming an unspecified amount.

The Bulletin has attempted to contact the Burfords.

Under further questioning from creditors, Mr Tang said initial property searches had not revealed any properties owned by Mr Burford in NSW or Queensland.

Searches by the Bulletin have revealed the Burfords’ Hope Island home, bought for $940,000 in 2019, is registered in Ms Burford’s name.

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 leased factory at Yatala.

Originally published as Couple left homeless after selling their house and paying $260k to collapsed Gold Coast company Paradise Motor Homes