One of Ford Australia’s best performing dealerships, Denmac Ford, has been forced into receivership as a result of low sales and financial hardship following January’s Brisbane floods.
Denmac Ford Pty Ltd has three sites in southwest Brisbane: two showrooms in Indooroopilly and Moorooka and its head office, sales, service and parts department in Darra. Bremer Ford, based in Ebbw Vale, is also included in the receivership takeover by Deloitte.
Together, the businesses employ approximately 120 people and have a turnover of more than $100 million every year.
Denmac Ford is a well-established name in Brisbane, having sold vehicles for more than 30 years. Between 2004 and 2006 it was Ford Australia’s top-selling retail dealer, and in 2006 it also sold more FPV models than any other dealership in the country.
Deloitte partner and joint receiver, Richard Hughes, said the initial plan was to continue to operate the business in cooperation with the director, staff and existing creditors.
“We believe there will be significant interest in the business and we are working hard to re-establish the business as we investigate the best way to realise value for the benefit of the stakeholders,” Mr Hughes said.“The initial tasks of the receivers include re-establishing supply and customer relationships, and working with the staff of the group to trade the business, whilst a sale program is initiated.”
In January 2011, sales of new vehicles in Queensland were 12.8 percent below January 2010 (13,300 vs 15,253).
Sales have since normalised in Queensland, and although sales are still 2.1 percent off last year’s pace, they are ahead of the total Australian new vehicle market, which is down 3.2 percent compared with January-April 2010.