Australian niche manufacturer, Tomcar, files for voluntary administration
Rezoom has been following Australian car manufacturer, Tomcar, for some time now. Its innovative approach to manufacturing and design has been heralded by many, from the CSIRO and its Kick-Start funding program to AusIndustry and its Innovation awards.
It’s been a heady ride, and for many an exceptionally safe one, given the global statistics on deaths and injuries caused by quad bikes and side-by-sides. The Tomcar was (and hopefully, still will be) the answer for a secure and cost effective vehicle to traverse farmland, mine sites and many other unforgiving types of terrain. They were even about to produce an all-electric version.
Sadly though the company has announced it is filing for voluntary administration, driven by ever increasing manufacturing costs, and worse still, by a group of hostile investors hell bent on taking over the company. The legal bills alone were prohibitive.
“We have had to close our doors because of a group of hostile investors tried to take over the company from us, while ever increasing manufacturing costs have put untold strain on the cash flow of the business,” CEO David Brim said to Manufacturers Monthly recently.
“We recently had an overseas investor about to come on board but at the last minute they backed out, leaving us with escalating legal fees and product costs, which simply pushed us over the edge.
“We want to thank everyone who supported our dream over the years and helped us along the way. It has been an incredible journey. We’ve tried our very best, but we couldn’t quite get there.”
It was a great try, and with luck, some common sense and a decent investor can help to turn it around.