Alexander Dennis (ADL) has placed Custom Coaches, its Australian bodybuilder based in Sydney and Adelaide, into Voluntary Administration. Custom employs around 300 staff.
In a statement ADL said: “As a business we have invested heavily in Custom over the past two years, but with further losses anticipated – and no significant changes imminent in the market place – it became incumbent upon us to place the business into Voluntary Administration.
“ADL is now working closely with Deloitte, who have indicated that they intend to seek a sale of the business as a going concern, in order to secure on-going employment and maintain vehicle supplies to customers.”
ADL acquired Custom Coaches in June 2012 investing in the business and its systems to improve quality, reduce build hours and improve cost competitiveness. However, the local market, which it was well placed to serve and growing at the time as State Governments invested, has fallen by around 30% since.
The Australian operation represented less than 10% of ADL’s £540m turnover last year and the parent group remains financially robust, profitable and with a strong balance sheet.