Denmac Ford and Bremer Ford to closeDOWNLOAD
27 May 2011: The Receivers and Managers of Denmac Ford Pty Ltd and Bremer Ford Pty Ltd regret to announce the immediate closure of both businesses.
Deloitte partners Richard Hughes and John Greig were appointed as joint and several Receivers and Managers of both businesses on 11 May 2011.
Mr Hughes confirmed that a thorough investigation of both businesses financial performance had been carried out to determine if the operation could continue while a buyer was sought.
Mr Hughes said: “Unfortunately, there was not sufficient cash flow to sustain the business, even in the short term. Despite our best efforts, we couldn’t find a way to keep the business trading while we carried out a sale process, which could have taken some time to complete.”
“The harsh reality is that given the ongoing financial losses incurred we would have struggled to justify the ongoing trading for the benefit of creditors and we were left with no alternative but to close the doors and dismiss most of the 120 members of staff.”
“Whilst we are preparing to sell business assets, for a short period, the business assets are still available for sale in one line, however, interested parties will need to conclude negotiations rapidly if this is to be a possibility. However, the business will not be sold as a going concern.”
Denmac Ford had been an established Ford dealer in Brisbane for over 30 years, servicing Brisbane’s south western suburbs with sales and service locations at Darra and a used car sales location at Moorooka.
Operating over three sites with its head office, sales, service and parts located at 2580 Ipswich Road, Darra. The other two showrooms are in Indooroopilly (34 Coonan Street) and Moorooka (1029 Ipswich Road). Bremer Ford Pty Ltd offers sales, service and parts from its 36 Brisbane Road, Ebbw Vale location.
The Receivers and Managers are working to minimise the impact of the closures on employees and other stakeholders, including investigating options to ensure employee entitlements are payable in full and as soon as practicable.
Ford Motor Company has confirmed that customers that purchased new Ford vehicles from the business, both before and after our appointment will remain covered by the Ford warranty.
Deloitte Corporate Reorganisation Group
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