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OzCar collapses into administration, 90 jobs lost
Australian used car dealer OzCar has collapsed into voluntary administration, weeks after it was handed fines by NSW Fair Trading.
- Australian used car dealer OzCar has collapsed into voluntary administration, weeks after it was handed fines by NSW Fair Trading.
- Administrators said 90 jobs would be made redundant and four dealerships would be closed as part of a restructure.
- A further 12 OzCar franchise sites – which are independently owned and operated – will continue running as normal.
Used car dealer OzCar has collapsed into voluntary administration just weeks after the business was investigated and fined by the NSW department of Fair Trading.
Administrators Glen Kanevsky and Jason Tracy of Alvarez & Marsal were appointed to the business on Friday afternoon, announcing that 90 employees would be made redundant and four dealerships would be closed, effective immediately.
The dealerships include the four company-owned NSW sites at Lansvale, Penrith, Cardiff and Gosford.
A further 12 OzCar sites, which are franchised and run independently of the company, will continue to run as normal.
Glen Kanevksy, Managing Director at Alvares & Marsal Corporate Restructuring, said administrators were urgently working on solutions to save the business.
“Our immediate focus is to understand the financial position of the business, engage with key stakeholders, and assess the options available as part of the voluntary administration process,” he said.
“We understand our appointment will create a level of uncertainty for customers, and we are committed to working through these issues to the extent possible.
“It is too early to comment on the likely outcome of the process, but we will provide further updates as appropriate.”
Administration comes weeks after fair trading investigation
The appointment of administrators to OzCar comes just weeks after the NSW Department of Fair Trading announced it was fining the business for engaging in “illegal sales practices”.
In late September, NSW Fair Trading said an internal investigation into the business had uncovered a “pattern of dishonest conduct” where it allegedly failed to meet consumer protection standards.
Among the findings were allegations that customers were being rushed or pressured into signing contracts they did not understand; and that several vehicles were “not an acceptable quality”.
The business and several of its directors were fined, and conditions were placed on its motor vehicle dealer license.
“Consumers have a right to clear information and safe vehicles. What we saw here was a pattern of behaviour which eroded customers’ basic consumer protections,” said NSW Fair Trading Commissioner Natasha Mann.
“Vulnerable members of our community should be supported by businesses during important life purchases, instead OzCar used this as an opportunity to pressure customers and secure sales.
“I want to again encourage any consumers who feel they have been treated unfairly by OzCar to lodge a complaint with NSW Fair Trading.”