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Track Trailer goes into administration, but don’t panic

The last few years has seen a lot of turmoil in the RV industry through the COVID years and now into 2024 with a cost of living crisis. Demand for RVs soared as travel restrictions bit, but now there’s a slackening of demand as the bubble bursts and people rein in spending. We’ve seen more than a few RV companies go under over the last few years, some with unfortunate results for customers who’d paid money for a van which the company took whilst being uncertain it could deliver.

Track Trailer, one of the industry’s innovators, has not been immune to the pressures and has now entered voluntary administration, appointing specialist turnaround/insolvency firm Cor Cordis. Track has, of recent years, been on an expansion drive with its Outback HQ and acquisition of brands such as Pioneer. Their products have been Australian-built, and high-end, appealing to buyers with significant budgets. It seems that now those people are enjoying overseas travel once more, and no longer as focused on local trips.

TRACK director Gerard Waldron said, “The Australian RV market has significantly declined over the past 12 months due to cost-of-living pressures and its main customer group increasingly opting for overseas travel in 2024. I have not seen worse RV market conditions in over 25 years. Despite our attempts to reduce costs in response to declining sales, the economic conditions have compelled me to appoint Administrators to explore a restructure.”

So what now? It’s important to understand that the appointment of Cor Cordis is not a liquidation, it is a proactive response to a business facing difficulties, and right now it is business as usual; servicing, sales etc. Personally, I applaud Track for taking this step and bringing in the experts early as other companies have simply refused to face reality for far too long and left customers short.

I would speculate that options for the business include a turnaround, sale in whole or part, downsizing..all the usual paths out of a situation such as this. In their favour Track has a good name in the industry with a loyal customer base built over the decades – many Tvan owners bring their vans back for updating and refurbishment after several years service. I would also suggest that one of the many caravan service specialists may buy some Track intellectual property and take on a specialist service role.

The Administrators have stated; “We’ve commenced an urgent review of Track Trailer’s financial position. We understand there are parties looking to put forward a restructuring plan while we continue to trade the business. We’ve set up an email address for customers, employees, and creditors. We will regularly update all stakeholders as we work through the voluntary administration process”

Concerned customers can contact Con Cordis via TRACK@corcordis.com.au.

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