Ford Dealers in Administration

[hawke]

I see in todays Fin Review that Denmac Ford and Bremmer Ford have had Managers and Recievers appointed.

Any problems for any members with deposits paid?

[Sam_Boss260]

Wow ......

[DJM83]

Knew about this last week, my good mate is was a Ford Service Manager.

[mickyyyy]

So what does this meant the consumer?

[hawke]

If you have made a payment to the dealer and have not recieved delivery, you may have a problem. It is likely that you will be an unsecured creditor, and may lose your deposit. However, you should speak to the Administrators, who should have a record of your payment, and the end result will depend on the outcome of the sale of the business.

[Burnout]

Denmac own Bremmer & they had a second hand yard on the mile, which was empty last week.
Denmac have been around for years, bad news.

[Smoke Pursuit]

Ford Motor dealerships and service centres, assets and inventory


Details

Sale type :SaleCreated date :17 May 2011ACN :Denmac Ford Pty Ltd (ACN 094 332 519)
Bremer Ford Pty Ltd (ACN 119 020 638)Closing date :27 May 2011Office :PerthEnquiries :Jack Prentice
Tel: +61 2 3308 7391John L Greig and Richard J Hughes were appointed Receivers and Managers of the Companies on 11 May 2011 and hereby seek expressions of interest for the purchase of the businesses and assets of the Companies as a going concern.
Highlights of this opportunity include:

• Consolidated turnover of $104m in FY10
• Consolidated turnover of $75m to April 2011
• Strong established customer base across 4 prime locations in Brisbane and Ipswich
• Service centre and spare parts retailer on Moggill Rd, Indooroopilly (leased)
• Dealership, service centre and spare parts retailer on Brisbane Rd, Ipswich (leased)
• Dealership, service centre and head office on Ipswich Rd, Darra (leased)
• Dealership on Ipswich Rd, Moorooka (leased)
• Strong fleet sales operation with significant forward delivery contracts.

Expressions of interest are required to be submitted to Deloitte prior to the close of business on Friday 27 May 2011.
Please contact Jack Prentice for a copy of the Information Memorandum.

taken from the Deloitte website who are the administrators.

Denmac have been doing it tough for a while, theres a long story to it, some of you will know of how Denmac was once part of the RJV group, which was where Ford owned a percentage of the businesses themselves. The retail joint venture was bigger in Sydney then QLD, but fell appart and was sold off to some South African mob!

I doubt any of the other Ford dealers will want to buy it, Darra's a dead horse because of its location now, and Bremer Fords no better.. I've given Denmac the opportunity to quote me many cars but have never bought one off them, they have always been tough to deal with from my perspective.

The writing was on the wall when Indooroopilly was shut.

At this stage they are still trading under external administration via Deloittes, so anyone whos bought a car should be sorted (they will want to reduce inventory), but there will be an issue with Ford and the Franchise if they don't move it quick, because they need to buy a certain amount of stock to keep it going.

[Yaw]

Wonder how long it will be before others follow

[Smoke Pursuit]

Originally Posted by Yaw

Wonder how long it will be before others follow

I dont think we will see any other any time soon...

You only have to look at Denmac Darra and the fact that they hadnt upgraded it to the new look like all the other dealers, which should have been done sometime ago but wasn't due to the capital required to do so.

[SSD-85]

This is a real shame. I found Denmac Darra Parts & service to be exceptionally honest & upfront. Ive always had good dealings with them. But their sales team were a massive let down. Rude & arrogant bunch of blokes with no intention of helping you. I guess thats the reason for their failure.

[Pedro]

What happened to the new, never registered XE ESP that they used to have in their showroom?

[Smoke Pursuit]

Originally Posted by Pedro

What happened to the new, never registered XE ESP that they used to have in their showroom?

Dennis Macanari who started denmac owns it. Last time I seen it was about 10 years ago when he lent it to Bryan Byrt Ford who had it on display.

[csv8]

Not good news !! I have always found them good to deal with.
Any other Ford dealers in other States ,in the same situation.?
Could it be related to the poor sales of Falcon?? New Tezza, Ecolpi, Focus and FG2 have come too late???? My nearest Ford dealer will be Metro's in Brekky Creek . I hope the workers get their entitlements...

[nstg8a]

that explains the empty yard i drive past every day. not good at all.

[HUNTER8]

If they run purely a Ford dealership they'll be struggling and hanging out for new models to arrive. Those that also run other brand dealerships would be using those to prop up the Ford one.
And yes we are in deep do do .........

[csv8]

Denmacs gone, there is no Ford dealer in the western suburbs, until Toowoomba. Not good...Lets hope someone takes over and can hold out for the new Tezza ,Focus and FG2......

[BAxtER]

i really liked Denmacs Old tv commercial jingle.
Anyone here think maybe Bryan Byrt or Q Ford might pick up where Denmac left off??

[Yellow_Festiva]

104m in turnover is no small operation.

What would have been the ballpark profit margin on that?

This would have been on the cards for a while, why didn't the managers take action sooner to try and stay out of administration?

Hope it is taken over. Although the first step will be to cut costs (staff) it's better than all losing their jobs.

[Smoke Pursuit]

Originally Posted by BAxtER

i really liked Denmacs Old tv commercial jingle.
Anyone here think maybe Bryan Byrt or Q Ford might pick up where Denmac left off??

I very much doubt either of those will want it because of its location, they will only be competing with themselves.. there was actually talk of Motorama picking it up and running it from Moorooka, but because there was no land attached to the businesses they didn't want it.

[Smoke Pursuit]

Originally Posted by Yellow_Festiva

104m in turnover is no small operation.

What would have been the ballpark profit margin on that?

This would have been on the cards for a while, why didn't the managers take action sooner to try and stay out of administration?

Hope it is taken over. Although the first step will be to cut costs (staff) it's better than all losing their jobs.

They have been working on it for 12 - 18 months.

They shut down one of their less busy operations 12 months ago, and slowly started to reduce inventory, e.g. lots of FPV's which cost you big dollars to hold..

Darra isn't a great site, its too big for what they were doing with it as it was originally set up to sell Trucks back in the 80's as well as new cars.

Most ford dealers are going into sub franchises to help bear the pain of Ford and its dieing market share.. Its not just sales they are missing out on, its servicing parts and aftermarket as well.

[Yellow_Festiva]

Originally Posted by DASH GT

They have been working on it for 12 - 18 months.

They shut down one of their less busy operations 12 months ago, and slowly started to reduce inventory, e.g. lots of FPV's which cost you big dollars to hold..

Darra isn't a great site, its too big for what they were doing with it as it was originally set up to sell Trucks back in the 80's as well as new cars.

Most ford dealers are going into sub franchises to help bear the pain of Ford and its dieing market share.. Its not just sales they are missing out on, its servicing parts and aftermarket as well.

Bugger. Not a good sign then.... thanks for that.

[PHANTMXR6]

Originally Posted by DASH GT

Dennis Macanari who started denmac owns it. Last time I seen it was about 10 years ago when he lent it to Bryan Byrt Ford who had it on display.

That's not the same Dennis McInerney that owns McInerney Ford in Morley Perth is it?

[Smoke Pursuit]

Originally Posted by PHANTMXR6

That's not the same Dennis McInerney that owns McInerney Ford in Morley Perth is it?

Nope...

[csv8]

Originally Posted by DASH GT

I very much doubt either of those will want it because of its location, they will only be competing with themselves.. there was actually talk of Motorama picking it up and running it from Moorooka, but because there was no land attached to the businesses they didn't want it.

Is Motorama building a new Holden dealership in Moorooka, next to their current small yard. Someone is building something on the old Bartons site???
Or Eagers buy it and have a Metro Ford site in Darra??????
As I said, Ford need to get new product out, ASAP!!!! it seems like whats coming is a year too late????

[Smoke Pursuit]

Originally Posted by csv8

Is Motorama building a new Holden dealership in Moorooka, next to their current small yard. Someone is building something on the old Bartons site???
Or Eagers buy it and have a Metro Ford site in Darra??????
As I said, Ford need to get new product out, ASAP!!!! it seems like whats coming is a year too late????

AP eagers won't buy Denmac...

They dumped Southside Ford for a reason, and trust me Metro Ford breaks no records either.

I can't see any existing Ford dealers taking it on in its current state, if they couldn't make a go of it who else will? Its all to do with the location etc.

[csv8]

Receivers blame collapse of Brisbane car dealership on floods
Thursday, 19 May 2011 10:39
James Thomson

Denmac Ford
Insolvency
Retail
Transport and logistics
One of Brisbane's largest and best-known car dealers, Denmac Ford, has been placed into receivership after a sale slump caused by the Brisbane floods.
Denmac, which also incorporates the Bremer Ford dealership in Brisbane, was placed into the hands of receivers John Greig and Richard Hughes of accounting firm Deloitte on May 11.

"While we are yet to form a final view on the reasons for the appointment, the recent flooding in Brisbane has hurt sales in the first quarter of this year," Hughes said in a statement.

The business has four locations across Brisbane and Ipswich and turned over $104 million in 2009-10, according to information released by the receivers.

It is continuing to trade while receivers start the process of selling the business as a going concern.

"Although it is still very early in the process we are planning to continue to operate the business in co-operation with the director, staff and existing creditors," Hughes said.

"We believe there will be significant interest in the business and we are working hard to re-establish the business as we investigate the best way to realise value for the benefit of the stakeholders."

According to an advertisement for the business, the group had turnover of $75 million between July 2010 and April 2011, which suggests full-year revenue will come in at around $100 million.

Expressions of interest in the business are due by May 27.

Reports suggest Denmac Ford business has been under pressure for some time with the owners reducing inventory and shutting down one location in a bid to reduce costs.

However, any efforts to turn around the business would have been made much harder by the poor sales of Ford Australia's flagship car, the locally-produced Falcon.

Total Ford sales are down 3.3% in 2011 (versus an industry down 1.5%) and the performance of the Falcon has been particularly worrying.

In April, Ford was forced to reduce production by 20% as demand for large cars slumped. At that stage, sales of the company's flagship Falcon large car had fallen a staggering 40% in 2011.

Figures released in May showed the Falcon had fallen out of the list of Australia's top 10 selling cars for the second time this year.

Over the last decade, Falcon sales have slumped from a high of 73,220 cars in 2003 to 29,516 last year.

Of course, most car dealers are currently feeling the pinch from consumer caution.

Motor vehicle sales figures released by the Australian Bureau of Statistics this week shows car sales in April were 3.5% lower than in March, and a worrying 8.4% lower than in April last year.

Total car sales for 2011 are down about 1.5% on the previous corresponding period.

Denmac Ford was contacted for comment but was not available prior to publication.

[SirHenry]

Originally Posted by Scotty85

This is a real shame. I found Denmac Darra Parts & service to be exceptionally honest & upfront. Ive always had good dealings with them. But their sales team were a massive let down. Rude & arrogant bunch of blokes with no intention of helping you. I guess thats the reason for their failure.

Couldn't agree more. Service and Parts are really good but the sales side I tended to find a bit on the rude and arrogant side of things.

This a big disappointment and shame, South West Brisbane lost one of its best service workshops in my opinion.

Hopefully someone might resurrect it perhaps....

[DJM83]

Originally Posted by csv8

However, any efforts to turn around the business would have been made much harder by the poor sales of Ford Australia's flagship car, the locally-produced Falcon.

Writings on the wall, is this the tip of the iceberg? I hope not.

[csv8]

Courier Mail Sat 21 May..Business section, has an article on Denmacs collapse.
'in it says.Eagers are looking at buying the Company" interesting!!!!

[BrisVegas]

http://www.caradvice.com.au/120219/d...isbane-floods/

Shame. I bought my last two cars from them.