Used car giant OzCar collapses into administration, 90 workers sacked
A major Aussie used car dealership chain has collapsed, leaving dozens of workers without jobs.
Used car dealership chain OzCar has collapsed into administration, forcing the closure of four dealerships across NSW, and leaving 90 workers without jobs.
Voluntary administrators were appointed to the company on Thursday, weeks after NSW Fair Trading fined the business $50,000 over its sales practices.
The closures affect OzCar’s dealerships in Penrith, Cardiff and Gosford, as well as its headquarters in Lansvale in Sydney’s southwest.
The company’s remaining 12 franchise dealerships across NSW, Queensland and Victoria will continue operating.
Glen Kanevsky and Jason Tracy were appointed as administrators by OzCar’s secured creditor.
Mr Kanevsky said the administrators were focused on understanding the “financial position of the business (and) engaging with key stakeholders and assessing the options”.
Japanese company Optimus Group, which holds a 30 per cent stake in OzCar, said an investigation by external advisers and an assessment of the company’s financial position prompted the appointment.
The shareholder said placing OzCar into administration was the best way to preserve cash and maintain the value of its assets.
The collapse follows regulatory action against the used car dealer after an investigation into its sales practices.
NSW Fair Trading fined OzCar $50,000 and three of its directors $11,000 each following findings relating to unfair sales practices.
The company was accused of pressuring customers into contracts and removing consumer protections.
NSW Fair Trading also alleged OzCar sold poor-quality vehicles and failed to meet standards required under Australian Consumer Law.
Fair Trading Commissioner Natasha Mann said the regulator had imposed the maximum available penalties.
“We hit them with the maximum fines that are available to us under the law,” Ms Mann said.
