Gidget Retro Teardrop Campers heads to court owing $3.5m to customers, creditors
Updated
The travel dreams of dozens of Australians have been left in tatters after the collapse of a retro camper-maker, which owes $3.5 million to investors and customers around the world.
Key points:
- Gidget Retro Teardrop Campers went into voluntary administration last week
- A total of 80 customers across Australia and America have lost $1.5 million in unreturned deposits
- One of the company's directors will face court on 11 charges of accepting payment and failure to supply
Brisbane-based Gidget Retro Teardrop Campers made built-to-order campers reminiscent of the teardrop style popular in the 1960s, and shipped them to the US, Canada and New Zealand.
But the company, run by directors Glenn Wills and Christine Bree, went into voluntary administration last week — leaving customers, investors and workers in the lurch.
Mark Roberts was planning to retire and travel around Australia. The Gidget camper he ordered was all part of the plan.
Now the Bundaberg resident is $22,300 out-of-pocket and his retirement dreams have been crushed.
"It's been two-and-a-half years of emotional torment," Mr Roberts told the ABC.
"I should have known better. I got caught up in the grooviness of it all."
Mr Roberts is one of 80 customers across Australia and America who have lost $1.5 million in unreturned deposits.
Mr Wills will face Brisbane Magistrates Court today on 11 charges of accepting payment and failure to supply, brought by the Queensland Office of Fair Trading.
Mr Roberts said he ordered a Gidget camper in 2015, but in February 2017 was told a $56,500 four-wheel-drive model was available. He upgraded his order and paid an extra $10,000 deposit.
"They should never have taken the last $10,000," he said.
Mr Roberts also spent money upgrading his car to get ready for the promised new model.
Photo:
Mr Roberts had hoped to retire and hit the road with his Gidget. (ABC Wide Bay: Eliza Goetze)
Documents lodged with the Australian Securities and Investment Commission (ASIC) show the company consulted with insolvency and forensic accountancy firm Worrells in mid-2016.
The documents state an accountant with Gidget contacted the insolvency firm in July to ask about "general insolvency options and risks for insolvent trading".
Then in October 2016, Mr Wills met the firm's director and "discussed company financial position, cashflow issues and risks for insolvent trading".
The documents state Gidget went into voluntary administration on January 11 this year after overseas financial backers in the business pulled out.
Three days after going into administration, the company posted a comment on its Facebook page stating: "If you are persistent you will get it. If you are consistent you will receive it."
It prompted disparaging responses, with one man commenting the company was "persistent in getting full payments an [sic] consistent in keeping it".
'They asked for cash'
Brisbane resident Gemma Cooper said she had lost $24,000 after waiting for a Gidget camper she ordered in 2015.
Ms Cooper said she was told there was delay in production as the orders had gone "gangbusters" after a YouTube video of the retro camper went viral in America.
About a dozen of the 80 customers who've lost money are from America.
In January 2017, Ms Cooper said the company also suggest they upgrade their order to the four-wheel-drive prototype called "Brumby Off-Road Camper".
"They asked for a further $10,000 in cash," she said.
"Come November and still no sign of the start of manufacture we cancelled our order and were told we would get a full refund in four monthly payments.
"But guess what — no money."
Emails Mr Wills wrote in late 2017 stated the company was able to refund customers in a timely fashion.
"We want to ensure that we are complying with our legal obligations, but more importantly we are doing the right thing by all our customers," Mr Wills stated.
He blamed delays in production on the loss of staff, driven away by cyberbullying from disgruntled customers.
'It was driven into the ground by poor management'
Twenty-three staff have lost their jobs and are chasing thousands of dollars in unpaid wages and entitlements.
Former assembly line worker Scott Bogaart said some were still waiting for $16,000 in pay, with wages only being paid on-and-off since November.
"It was a really good business driven into the ground by poor management," he said.
Administrator and partner with Worrells, Lee Crosthwaite, said whether the company was trading while insolvent will form part of the investigations, with a first creditors meeting to be held next Tuesday.
Mr Crosthwaite said he hoped the company would be sold as a going concern.
"It's a good quality Australian product but the company has had some financial difficulties," Mr Crosthwaite said.
An announcement on Gidget USA's website said the sales division of Gidget North America was closed.
"To allow the Australian factory to concentrate on their backlog of existing orders," it added.
Mr Wills declined to comment on customers complaints, saying he had to let the administrators handle the matter.
Topics: travel-and-tourism, lifestyle-and-leisure, courts-and-trials, small-business, brisbane-4000, qld, australia, bundaberg-4670, united-states
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