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Tango Caravans collapses into liquidation days after ‘temporary closure’

Dozens of customers have been left out of pocket and one person has been left homeless in the wake of the company’s sudden collapse.

Real reason Aussie businesses are collapsing

A caravan company has suddenly collapsed, leaving dozens of customers out of pocket and at least one without a home.

On Wednesday afternoon, Victorian-based Tango Caravans Pty Ltd plunged into liquidation.

The business manufactured customised caravans and was headquartered in Somerton, Melbourne.

Tyler Edmunds, a father-of-two, had been fearing the worst for months after being promised his caravan would be completed by February – but still with no sign of it

The Albury resident had made the three-hour trek to Tango’s Melbourne head office several times demanding he get what he paid for, but each time he left empty-handed.

The young dad had been asked to make the full payment – $73,000 – for his caravan, and he is now facing the prospect of losing it all.

Mr Edmunds told news.com.au that everyone feels “ripped off”.

Tango Caravans has collapsed into liquidation, impacting this family.
Tango Caravans has collapsed into liquidation, impacting this family.
Tango Caravans had been in business for years but has gone bust.
Tango Caravans had been in business for years but has gone bust.

News.com.au understands at least 30 separate customers have been impacted, according to a poll posted on a private Facebook group about Tango Caravans.

One woman had forked out $100,000, with plans to travel the country and use the caravan as her home for the foreseeable future.

Andrew Yeo of insolvency firm Pitcher Partners is the appointed liquidator and he has started looking into the company’s affairs.

He said that “many clients” had paid deposits and that the company ceased trading immediately once he was appointed as liquidator.

In a devastating blow to customers, Mr Yeo said he is not in a position to refund customers.

And on top of that, the liquidator said that Tango doesn’t have any stock on its property and doesn’t control any caravans.

“It may be possible that some caravans are presently being manufactured by external suppliers, and a partial resolution may be achievable,” he added.

Mr Yeo also noted there were “significant debts”, mostly from customers paying deposits, but also to other creditors including the Australian Taxation Office.

Do you know more or have a similar story? Get in touch | alex.turner-cohen@news.com.au

The money the Edmunds couple paid to Tango Caravans.
The money the Edmunds couple paid to Tango Caravans.
The ‘important update’ staff received from the company at the weekend.
The ‘important update’ staff received from the company at the weekend.

On Sunday, Mr Edmunds received an alarming email from Tango Caravans which stated the business would need to “temporarily close”, blaming “unforeseen circumstances” including understaffing.

All his calls and emails to the business have gone unanswered.

And just three days later, the company officially entered liquidation.

The Edmunds family signed a contract with Tango Caravans just before Christmas last year and handed over a $13,000 deposit.

They were meant to receive their caravan in February 2024.

In April, the company asked Mr Edmunds for the final payment, but he says that when he asked for photographic proof it was completed, they couldn’t provide him with any.

Tango Caravans customised its caravans for customers.
Tango Caravans customised its caravans for customers.
The liquidator has advised that customers will not be receiving refunds.
The liquidator has advised that customers will not be receiving refunds.

At the end of May, the company asked again, and they were able to show him a photo of a nearly-completed caravan. It was the same colours Mr Edmunds had chosen, so understanding it was his, and made the bank transfer.

But since then, the project went nowhere. Tango Caravans told him their manufacturer was delayed.

But when he visited the manufacturing factory, they said the caravan was done – but they were still waiting for Tango Caravans to pay them.

“That was when my heart sunk,” Mr Edmunds said. “I was angry. I knew it (the money) was gone.”

He said he would give the company until August 9 and then he would make a complaint to Consumer Affairs Victoria.

It went bust a few days later.

This is the second Melbourne-based caravan company to collapse sensationally this year.

Earlier this year, in May, news.com.au reported that Highline Caravans Pty Ltd had gone into liquidation with debts of $1.14 million to 58 creditors.

alex.turner-cohen@news.com.au

Original URL: https://www.news.com.au/finance/business/other-industries/tango-caravans-collapses-into-liquidation-days-after-temporary-closure/news-story/dd5abbb842ffbb763df53c1e7652dd90