Collapsed firm Avondale Coachcraft back on move

Sep 25 2008 by Jon Griffin, Birmingham Mail

ACCOUNTANTS handling the collapse of Avondale Coachcraft have a tricky problem on their hands – in the shape of more than 100 caravans.

Avondale went bust after 37 years following a dramatic decline in summer sales, but administrators PricewaterhouseCoopers have now relaunched production in a bid to attract buyers.

And PWC staff, who have had to lay off all but 15 of the 149-strong workforce at Atherstone, Warwickshire, hope that the stock of caravans could attract potential purchasers.

Matthew Hammond, joint administrator, said more than a dozen would-be trade buyers had already been in talks with PWC.

“We will evaluate whether there is real interest in the business in situ.

“There are more than 100 caravans in stock at the moment and they sell from £8,500 to £16,000, depending on size. These are brand new caravans just off the line.

“We are trying to avoid a one-off fire sale of stock which would not do the dealers any favours, and we have had expressions of interest in that stock. We have also re-commenced manufacturing.

“It is quite unusual for administrators to do this, but we think that it is worthwhile.

“It is a difficult time, especially given the seasonal nature of this business.

“But it gives us the opportunity for those units which are currently worthless to be completed and also the time to have discussions with interested parties.”

Mr Hammond said Avondale, which manufactures up to 2,000 caravans a year, had no bank debt.

“It is only unsecured debt to creditors, including a range of different suppliers.”

The family-run business was set up by Gerald and Eileen Ball and later run by their son Christopher Ball.

The firm has also been involved in caravan site development, including complexes in north Lincolnshire and Devon.