Imagine pouring your savings into a dream luxury caravan, only to have it vanish into thin air. That's the harsh reality for hundreds of Zone RV customers, left reeling after the company's dramatic collapse. But here's where it gets even more shocking: administrators are now pointing fingers at the company's director, accusing him of knowingly steering the ship towards disaster while it was already sinking financially.
Zone RV, once a shining star in the luxury caravan market, found itself in hot water in December 2023, plunging into administration with a staggering $42 million debt to hundreds of creditors, including nearly 200 heartbroken customers. A recent report to creditors paints a grim picture, revealing the company was likely trading while insolvent as early as September 2024, and possibly even earlier, in August 2023.
Administrators Cor Cordis aren't pulling any punches. They're preparing to report Zone RV's sole director, David Biggar, to ASIC, alleging breaches of the Corporations Act. The report bluntly states that Biggar likely failed to exercise reasonable care, due diligence, and good faith by continuing to operate while the company was insolvent.
This scandal has sparked outrage among customers, especially after revelations that ASIC, the corporate watchdog, refused to investigate a whistleblower complaint against Zone RV. Cor Cordis partner Kate Conneely adds fuel to the fire, stating that current and former officers of Zone RV need to explain several questionable transactions. The next steps, she warns, could involve public examinations or litigation seeking compensation for the creditors.
So, what went wrong? The report cites a perfect storm of factors: poor financial management, risky expansion strategies, constant leadership changes, and a dangerous reliance on customer installment payments to keep the lights on. Cor Cordis recommends winding up and liquidating the company, estimating a potential $21 million claim against Biggar for insolvent trading.
Zone RV's rise and fall is a cautionary tale. After experiencing rapid growth post-pandemic, with annual revenue soaring to $90 million and a workforce of 281 producing 12 caravans weekly, the company hit a brick wall. High workforce attrition, rising inflation, and a failure to turn a profit since at least 2021 led to a staggering $19.6 million in losses.
And this is the part most people miss: Cor Cordis pins much of the blame on One Composites, a Zone RV division manufacturing caravan panels, which hemorrhaged money.
The company's financial tightrope act involved heavily relying on new customer deposits to fund operations. When administrators took over, there were 186 future orders with $20.3 million paid in advance. Zone RV's payment structure – a 5% initial deposit, two progress payments, and a final 20% upon completion – left many customers vulnerable. While some caravans were delivered during administration, 148 customers who paid approximately $15 million face the devastating prospect of losing everything.
Biggar's actions are under intense scrutiny. The report reveals he unsuccessfully sought additional funding from lenders and investors before the collapse. Interestingly, he signed a loan agreement in December 2024 to provide Zone RV with up to $10 million. However, only $2 million was advanced in June 2025, and half of that was repaid to Biggar just weeks before the company folded. This raises serious questions about his ability to fulfill the loan commitment and his honesty in dealings with auditors.
Zone RV's relationships with suppliers also crumbled in 2024, with some halting parts supply due to unpaid invoices. The company resorted to finding new suppliers, further straining its finances. Adding insult to injury, Zone RV owed approximately $1 million to the ATO, essentially using unpaid taxes as a makeshift source of working capital.
Biggar remained employed throughout the administration process but was let go on Thursday. He has not responded to requests for comment.
Insolvency expert Michael Sloan clarifies that while the allegations are serious, they are not criminal in nature. He emphasizes that the liquidators have the tools to pursue claims against Biggar, provided there are recoverable funds.
Multiple parties have expressed interest in buying parts of Zone RV, but it remains unclear if customers will see any compensation from a potential sale. A crucial meeting next week will determine the company's fate, leaving creditors anxiously awaiting their turn to decide.
This debacle raises important questions: Could this collapse have been prevented with better oversight? Should ASIC have acted on the whistleblower complaint? And what responsibility do directors have when their companies teeter on the edge of insolvency? We want to hear your thoughts – share your opinions in the comments below.
