A well-known motorcycle retailer with dozens of outlets across Australia has gone bust, with up to 400 workers now facing unemployment.
Peter Stevens Motorcycles entered voluntary administration on Monday, 55 years after it was founded in 1970.
Administrators Craig Shepard, Andrew Knight and Michael Korda from KordaMentha have taken control of the company.
‘The administrators intend to continue to operate the companies on a business-as-usual basis while they seek immediate expressions of interest for the sale or recapitalisation of the businesses,’ KordaMentha said in a statement.
Shepard declared that the business had plenty going for it and could be saved.
‘With more than 50 years of brand recognition, an established dealer footprint across the country and a significant share of the local motorcycle market, there is a genuine turnaround opportunity here,’ he said.
‘These are strong foundations for a new owner to set the business up for future success.’
The Federal Chamber of Automotive Industries said there had been a 3.5 per cent decline in motorcycle sales between January and March compared to the same time last year.
Peter Stevens Motorcycles has entered voluntary administration (a store is pictured)
About 400 workers at Peter Stevens Motorcycles are now facing unemployment
‘Motorcycles are often a discretionary purchase, and in the current environment of high living costs and interest rates, many Australians are understandably more cautious with their spending,’ FCAI chief executive Tony Weber said.
‘While there is a slight softening across all categories in the wake of current economic conditions, we expect to see enthusiasm among Australian riders to return as conditions stabilise and maybe ease.’
Peter Stevens’ collapse is the latest in a series of closures in Australia’s retail sector during the prolonged cost-of-living crisis.
ASX-listed Mosaic Brands entered administration in October and failed to find a buyer – resulting in 2,500 workers losing their jobs.
Many businesses in the clothing and fashion sector have failed as discretionary spending dries up due to rising mortgages and rents, grocery prices and utility bills.
The building industry also has seen a number of company failures due to high material costs and the soaring cost of sub-contractors resulting in builders being unable to deliver properties at budget.
Daily Mail Australia has contacted KordaMentha for comment.
