New owners of Paradise Motor Homes resume manufacturing and embark on hiring spree

Manufacturing has restarted at the headquarters of collapsed Paradise Motorhomes, and the business is recruiting new staff. Here’s why creditors aren’t happy:

Manufacturing has restarted at the headquarters of Paradise Motorhomes – but creditors of the $20m collapse are yet to find out if they’ll see any of their money again.

New owners of the business, said to be a Victorian company, posted to Paradise’s social media pages this week, saying they were “excited to announce the reopening of Paradise Luxury Motor Homes in 2023 under new ownership and new management”.

The business has also embarked on a hiring drive, advertising for welding and sheet metal fabricators, technicians, painters and other staff, adding that “Ex-Paradise staff members are welcome back and will be at the top of our list”.

Screenshots from Paradise Motor Homes facebook page.

“All the staff members and the new owners are dedicated to continue building the best quality built Motorhomes in Australia,” the post said.

“We have been very busy relocating to our new premises at 21 Dixon St, Yatala QLD.

“With the new factory set-up, Paradise Luxury Motor Homes has started manufacturing motor homes and getting ready to deliver to long awaited customers.

“All the team at Paradise Luxury Motor Homes would like to welcome you back and look forward to making your dreams a reality!”

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

Customers responding to the company’s post had mixed reactions, with several asking the new owners to introduce themselves.

“What guarantees will you provide so that we don’t lose our money AGAIN,” Stephen Winterton wrote.

“We are lucky to own a Paradise Motorhome but since ours was built the business has gone down twice. They sure need to guarantee it won’t happen a third time. New owners need to show how dedicated they are,” wrote David Emmerson.

Tania Raboczyj invited the new owners to “Make our dream a reality, and give us our $200k plus back.”

Paradise Motor Homes motorhome

Staff answering the phone at the business last week declined to comment on the relaunch, and liquidator Jason Tang of Cor Cordis said the sale of the business was yet to complete.

There’s no sign in company records of the business name transferring to a new company.

The retirement dreams of Paradise customers were dashed when its four companies went into administration in October 2022. Some were owed as much as $400,000 each for motorhomes they never received.

Despite paying hundreds of thousands of dollars for the motorhomes, customers have been told they do not own them as they are considered assets of the collapsed group.

Paradise Motor Homes director Shannon Burfoed could be liable for hefty insolvent trading claims.

When Paradise Motor Homes liquidation will end

January 21, 2023: Customers stung by the $20m collapse of the Paradise Motor Homes group will know within weeks if they will get any of their money back.

However, with the millions in debt likely to far outweigh the company’s assets they’re probably not holding their breath.

The retirement dreams of Paradise customers were dashed when its four companies went into administration in October 2022. Some were owed as much as $400,000 each for motorhomes they never received.

Liquidator Jason Tang of Cor Cordis said the sale of the business to a Victorian company should be completed in the next fortnight.

The return, if any, to unsecured creditors of the Paradise companies depends on the proceeds of the sale and the result of negotiations with secured creditors, some of which hold security interests over different parts of the unfinished motorhomes.

The phone line at the business’s Yatala premises was answered this week by a woman who declined to comment on any potential plans by the prospective new owner.

Many customers of Paradise Motor Homes are seniors and retirees.

Mr Tang said he hoped to have the liquidation completed before he lodges his next statutory report in February.

“I’m still working through those issues and hope everything will be wrapped up by February,” he said.

Despite paying hundreds of thousands of dollars for the motorhomes, customers have been told they do not own them as they are considered assets of the collapsed group.

One couple, owed $260,000, has been left without a home after giving up everything to live in a Paradise vehicle which never arrived.

Paradise Motor Homes in Yatala. Picture: Richard Gosling

Mr Tang was more recently appointed the liquidator of a fourth Paradise company, Paradise Auto Tech, which was wholly owned by the group’s manufacturing arm.

I his report on that liquidation, he said the company had just $3 to its name but owed more than $1.1m – mostly to other companies within the group.

The report said Paradise Auto Tech had likely been trading insolvent since June 2018, resulting in a potential insolvent trading claim of $500,000 against sole director Shannon Burford.

The liquidator has previously reported the other Paradise companies had been trading insolvent from at least June 30, 2020, resulting in potential insolvent trading claims against Mr Burford of $5.2m.