One of Ford Australia’s most successful dealerships of the past decade, Denmac Ford, has been closed by receivers.
In total, four sites in Brisbane’s southwest – three run by Denmac Ford Pty Ltd and one by Bremer Ford Pty Ltd – have been shut down, leading to more than 100 job losses.
Denmac Ford has two showrooms in Indooroopilly and Moorooka, and a head office, service and parts department in Darra. Bremer Ford has a single dealership based in Ebbw Vale.
Deloitte partners Richard Hughes and John Greig were appointed as joint receivers of the businesses earlier this month.
Mr Hughes said the businesses, which suffered financially as a result of January’s floods, did not have sufficient cash flow to be sustained, 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,” Mr Hughes said.“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.”
Mr Hughes said the receivers were currently investigating options to ensure employee entitlements were paid in full and as soon as possible.
As reported last week, Denmac Ford has sold vehicles in Brisbane for more than 30 years and was Ford Australia’s best performing dealership between 2004 and 2006.
Ford Australia has confirmed the warranties of vehicles purchased from the dealerships will not be affected as a result of the closures.