Tango Caravans customers left with nothing after $3.3m collapse
A Melbourne caravan retailer that collapsed owing millions is now being investigated by the state’s consumer watchdog, as liquidators confirm customers will never get their money back.
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A Melbourne caravan maker that collapsed owing more than $3.3m is now being investigated by Victoria’s consumer watchdog, as liquidators confirm “devastated” customers will never get their money back.
The details are contained in a new report lodged by the liquidator picking through the financial wreckage of Tango Caravans which collapsed in August leaving customers from across Australia facing losses of up to $100,000 each.
Pitcher Partners liquidator Andrew Yeo has also found Tango director Sarah Horter – who has never spoken publicly about the collapse – possibly traded while insolvent for more than a year and potentially oversaw unfair preference payments.
Trading while insolvent means a company took on new debts when it knew it couldn’t pay them back, while unfair preference payments are payments which favour one creditor over another.
Mr Yeo has also revealed Consumer Affairs Victoria has begun probing the Tango collapse and Ms Horter’s conduct as its director.
“Consumer Affairs Victoria have also made preliminary enquiries with me and are investigating the affairs of the company and its director independently of my administration,” he said.
His report shows Tango collapsed owing 70 unsecured creditors, mainly customers, a total of $3,283,688, as well as nearly $50,000 in wages, annual leave and superannuation.
Software company Xero is also owed $321,186.
Mr Yeo warned creditors would not get any money back given his investigations had revealed Mr Horter has no material assets such as properties or cars to settle any claims.
“There are insufficient funds to cover the costs of the liquidation and therefore there will be no dividend paid to unsecured creditors,” he said.
Tango was a caravan retailer that produced its own range of vans built by third-party manufacturers.
The business was headquartered in Somerton in Melbourne’s northern suburbs.
Mr Yeo said despite receiving deposits from 60 customers totalling more than $2m, Tango had not paid manufacturers to start construction.
“While deposits had been received from customers, I was informed that the company’s manufacturers for each bespoke order, in a number of instances, had not received any payments, partial or full, that were required to commence the construction of the caravans,” he said.
“In my communication with manufacturers, I have been advised that manufacturers did have caravans at various stages of completion of which they have not received full payment.”
Mr Yeo alleged Tango had traded while insolvent since March last year.
But he advised it would be “uncommercial to pursue” a claim against Ms Horter over the matter.
His report also reveals he reported Tango to the Australian Securities and Investments Commission but the corporate cop has decided not to pursue further investigations into the company’s affairs.
The report said Bizcap, Tango’s lender, has not received any money from the liquidation.
Customer Sylwia Logan, who claims Tango demanded she pay her customised van in full and then cancelled the build order with the manufacturer after pocketing the funds, said she was “relieved” Consumer Affairs had decided to investigate.
The Sunbury resident took out a loan to cover the cost of the van, taking her total losses to more than $90,000 when interest payments are taken into account.
“If she’s not going to be held accountable then what’s to stop her from opening another business, or from other people copying her,” Ms Logan said.
A CAV spokesperson said: “Consumer Affairs Victoria take reports that people have paid for products or services that are not delivered very seriously.”
CAV was unable to comment further as the investigation is ongoing.
Tango was contacted for comment.
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