Used car dealership OzCar collapses into administration
Summarised from 2 outlets · Updated 9 Oct, 23:55 · Archive
Australian used car dealership chain OzCar has collapsed into administration, closing four dealerships and eliminating 90 jobs.
Used car dealership chain OzCar has collapsed into administration, forcing the closure of four dealerships across New South Wales and eliminating 90 jobs. Voluntary administrators were appointed on Thursday. The closures affect OzCar's dealerships in Penrith, Cardiff and Gosford, as well as its headquarters in Lansvale in Sydney's southwest.
The collapse follows regulatory action by NSW Fair Trading, which investigated the company's sales practices. Fair Trading fined OzCar $50,000 and three of its directors $11,000 each. The company was accused of pressuring customers into contracts, removing consumer protections, selling poor-quality vehicles and failing to meet standards required under Australian Consumer Law. Fair Trading Commissioner Natasha Mann said the regulator had imposed the maximum available penalties.
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. Twelve franchise dealerships across New South Wales, Queensland and Victoria will continue operating.
How it is being reported
- Used car giant OzCar collapses into administration, 90 workers sackedA major Aussie used car dealership chain has collapsed, leaving dozens of workers without jobs.The West Australian · 9 Oct, 23:23
- Used car giant OzCar collapses into administration, 90 workers sackedA major Aussie used car dealership chain has collapsed, leaving dozens of workers without jobs.Perth Now · 9 Oct, 23:23
In this story: OzCar · NSW Fair Trading · Optimus Group · Lansvale · New South Wales · Queensland · Victoria
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