Denmac Ford closing today.

Smoke Pursuit · 26-05-2011, 01:58 PM

Hey guys,

just a heads up, Denmac ford are closing the doors at 5 pm tonight for good. Staff have all been laid off and told deals over.

Just a heads up for anyone whos getting a car serviced there etc, go chase it up quick!

Cheers.

Grippy · 26-05-2011, 02:07 PM

Not good news for Ford at all. Tough times ahead it seems.

Supercharged · 26-05-2011, 02:15 PM

They have 3 locations, which one or all 3.

Sprint347 · 26-05-2011, 02:17 PM

All 3, they've gone into receivership.

Smoke Pursuit · 26-05-2011, 02:18 PM

Yes all 3, the receiver was trying to trade on but has apparently decided to pull the pin and lock all yards up tonight, including service / parts.

Sam_Boss260 · 26-05-2011, 04:02 PM

That is a shame. Just drove past the Indro service centre last night, and they had quite a few cars in there....

kaniSS · 26-05-2011, 04:17 PM

Any cheap deals?

Maggot · 26-05-2011, 04:51 PM

Worst thing is that the administrators will now eat up all the money, and the staff will have to get thier money from the government.

Company receivership is legalized robbery (IMO of course!)

Supercharged · 26-05-2011, 04:59 PM

These days it isn't enough to rely on one or two brands but sell various brands to spread the sales.

Martys-Bionic-XR · 26-05-2011, 05:01 PM

Does this include bremer ford?? I thought denmac owned them?

Dave_au · 26-05-2011, 06:34 PM

Quote:

Originally Posted by Maggot

Worst thing is that the administrators will now eat up all the money, and the staff will have to get thier money from the government.

Company receivership is legalized robbery (IMO of course!)

Well are there employee entitlements owing?

You do realise employees also are priority creditors in any insolvency administration (although secured creditors will jump ahead with what are called "fixed charge assets").

Smoke Pursuit · 26-05-2011, 06:38 PM

Quote:

Originally Posted by Dave_au

Well are there employee entitlements owing?

You do realise employees also are priority creditors in any insolvency administration (although secured creditors will jump ahead with what are called "fixed charge assets").

Ofcourse there would be entitlements owing.

The banks will get a go before anyone else, but the receivers ofcourse!

jpd80 · 26-05-2011, 06:53 PM

Quote:

Originally Posted by Dave_au

Well are there employee entitlements owing?

You do realise employees also are priority creditors in any insolvency administration (although secured creditors will jump ahead with what are called "fixed charge assets").

Employees, suppliers and even customers that have paid deposits are all considered unsecured creditors.

Maggot · 26-05-2011, 08:25 PM

Quote:

Originally Posted by Dave_au

Well are there employee entitlements owing?

You do realise employees also are priority creditors in any insolvency administration (although secured creditors will jump ahead with what are called "fixed charge assets").

Priority in the real world is.

-the business undertakers/the secured creditors
-the business undertakers then take whatever scraps are left

-the employees get their money in 6-9 months from the government
-the other creditors get nothing unless they are game enough to group up and vote the administrators out, or accept an early offer.

No matter what they tell you as an employee, you have no right to any of the money over and above the banks and the admins.

the failure of Ansett years ago led to legislation that pays people now.. but it takes months.

Smoke Pursuit · 26-05-2011, 05:18 PM

Yes Bremer are gone too..

csv8 · 26-05-2011, 05:26 PM

Sad times..I hope its not a sign of things to come. New Tezza cann't come soon enough, But when ??? no ads for it ??? Ranger, Focus or FG2 all coming too late. How many other Ford dealers are in a similar situation????
My nearest Ford dealer will be Bryan Byrt, Mt Gravatt. or Metro's Brekky Creek.
Westpoint Auto have a service Dept in Monier. 3kms from home...Buying a Holden will be more conveinient for me..sad too say...Lets hope the Denmac workers get the entitlements..Who's buying Denmacs stock????

Supercharged · 26-05-2011, 05:43 PM

It isn’t one of those close today and open again next week wiping off most of the debt and employees entitlements?

Smoke Pursuit · 26-05-2011, 05:46 PM

Quote:

Originally Posted by FG Turbo Ute

It isn’t one of those close today and open again next week wiping off most of the dept and employees entitlements?

Yes thats right, there will be a new company setup most likely part of a group who will buy the goodwill / franchise, stock and any other assets like workshop equipment, computers etc.. The debt / entitlements will go down with the rest of the company.

Smoke Pursuit · 26-05-2011, 05:44 PM

Theres 3 big boys looking at it apparently..

So it may still be taken over, but i doubt the employees will get their entitlements, but they may be re-employed by the new company that takes the sites / stock over.

I would say Ford will buy the stock back and farm it out to other dealers or leave it there till a buyer is found.

Dave_au · 26-05-2011, 06:37 PM

Quote:

Originally Posted by DASH GT

I would say Ford will buy the stock back and farm it out to other dealers or leave it there till a buyer is found.

Doubtful - depends on contract terms.

A Receiver has a duty to establish a market value for the assets in their control and to sell them for that value. Providing the cars are not encumbered further, and are assets available to the Receiver, he/she will probably boot them to Grays or Manheim Fowles to sell over a period of time to try to protect value.

Smoke Pursuit · 26-05-2011, 06:43 PM

Quote:

Originally Posted by Dave_au

Doubtful - depends on contract terms.

A Receiver has a duty to establish a market value for the assets in their control and to sell them for that value. Providing the cars are not encumbered further, and are assets available to the Receiver, he/she will probably boot them to Grays or Manheim Fowles to sell over a period of time to try to protect value.

The receiver wants to sell it as a going concern, if he dumps the stock to grays or manheim fowles hes going to cause a drama... Its a catch 22... I know they sold some stock off to other dealers already to try and clear some of it out, I think some of the dealers were trying to help them out in that regard.

Its more then likely someone will buy the franchises and they are going to want some stock so they can get things open again pretty soon, but it takes time to do a duediligence on the business, plus Ford have to accept the buyer.

Road Games · 26-05-2011, 06:10 PM

Serves them right .. RE: My other thread about dad trying to buy a car from two of these dealers !!

paule11 · 26-05-2011, 06:51 PM

Quote:

Originally Posted by XR6menace

Serves them right .. RE: My other thread about dad trying to buy a car from two of these dealers !!

I found them great to deal with 4 years ago when I brought the xr6

SEZ213 · 26-05-2011, 06:26 PM

Perhaps a little sympathy for the people who've lost their jobs...I highly doubt it serves them right...

It is however, a sign of the times. I am curious how a business that has been operating for 30 odd years manages to end up in this financial position though...

Smoke Pursuit · 26-05-2011, 06:32 PM

Quote:

Originally Posted by Sezzy

Perhaps a little sympathy for the people who've lost their jobs...I highly doubt it serves them right...

It is however, a sign of the times. I am curious how a business that has been operating for 30 odd years manages to end up in this financial position though...

Because in the 30 years that its been running its had serveral lots of different management. They blame the floods and the GFC but theres a little more to it then that. The Falcon / Territory decline has not helped them, and being a single franchise dealership is not a good way to be in times like these, espeically considering the size of the Darra site, theres room there for a second franchise and alot of storage up the back for new cars!

I agree, at the end of the day theres probably plenty of good people that have worked there for a long period of time and Denmac Ford was probably their life.. Hopefully they will be able to regain employment soon!

SEZ213 · 26-05-2011, 06:45 PM

Quote:

Originally Posted by DASH GT

Because in the 30 years that its been running its had serveral lots of different management. They blame the floods and the GFC but theres a little more to it then that. The Falcon / Territory decline has not helped them, and being a single franchise dealership is not a good way to be in times like these, espeically considering the size of the Darra site, theres room there for a second franchise and alot of storage up the back for new cars!

I agree, at the end of the day theres probably plenty of good people that have worked there for a long period of time and Denmac Ford was probably their life.. Hopefully they will be able to regain employment soon!

It's the one owner though, right?

I saw the article about the floods, but I think for it to be coming out now, this would have been an issue months before the floods hit...?

I hope that someone does buy it, and the workers aren't too hard done by as a result of the news - I certainly wouldn't want to be in their shoes...

geckoGT · 27-05-2011, 05:43 PM

Quote:

Originally Posted by Sezzy

It's the one owner though, right?

I saw the article about the floods, but I think for it to be coming out now, this would have been an issue months before the floods hit...?

I hope that someone does buy it, and the workers aren't too hard done by as a result of the news - I certainly wouldn't want to be in their shoes...

I doubt the floods had too much to do with it, Denmac Indooroopilly was closed and is now an Audi dealership. This occurred quite a few months ago and probably before the floods, that area was not even affected by the floods. The Darra site would have lost business for a few days, perhaps a week during the floods but no flood damage was sustained.

I think it is more of a sign of tough times, too many eggs in one basket being a single manufacturer franchise. I guess people like me have not helped, we have previously bought 3 cars from Denmac, all FPV but times have changed and we have moved away from Ford for a number of reasons. Out of respect to the employees at Denmac I will not go into it but lets just say it is a combination of service centre experiences, experience of Ford itself and product quality that has caused this change. I know we are not alone on this one.

Road Games · 26-05-2011, 06:49 PM

Quote:

Originally Posted by Sezzy

Perhaps a little sympathy for the people who've lost their jobs...I highly doubt it serves them right...

Perhaps .. but i'm currently unemployed so i call their attitude as i saw it when Dad tried to buy a NEW G6 ET!!

You don't have to reply on everything you don't agree with Sarah ...

SirHenry · 26-05-2011, 06:57 PM

Quote:

Originally Posted by XR6menace

Perhaps .. but i'm currently unemployed so i call their attitude as i saw it when Dad tried to buy a NEW G6 ET!!

You don't have to reply on everything you don't agree with Sarah ...

I thought their sales let them enormously their attitude was not good however,

Their Service and Parts team they are damned good guys and have saved me a lotta $ over the years.

Unemployment is never fair nor is it wanted...

TheSneakiness · 26-05-2011, 06:59 PM

Quote:

Originally Posted by XR6menace

Perhaps .. but i'm currently unemployed so i call their attitude as i saw it when Dad tried to buy a NEW G6 ET!!

Absolutely no need for that Darren. Once off leaves a sour taste in everyone's mouth for sure but let bygones be bygones. Holding a grudge leaves one man bitter.

Slightly off topic, what happened to your Repco job?