SOUTHERN Cross Automotive Group has been placed into receivership.

The company's headquarters are in Toowoomba and it also operates car dealerships in Roma, Dalby, Warwick and Chinchilla.

Southern Cross Automotive Group receiver Peter Hedge took control of the business yesterday.

He said the company had accumulated more debt than it could handle.

"It's been necessary to relieve the previous owners of the management of the company for the purposes of being able to keep the business trading during the transition to a new owner," Mr Hedge.

Peter Hedge of Hedge and Associates talks about the insolvency of Southern Cross Automotive Group.
Peter Hedge of Hedge and Associates talks about the insolvency of Southern Cross Automotive Group. Kevin Farmer

"It is effectively like a change of ownership, it's business as usual."

Mr Hedge said he did not anticipate that any jobs would be lost, but warned that some local business would have lost money through their dealings with the previous management.

He said the company that owned the business was not the same as the business itself.

"This is a good, viable business that operates the best brands in the automotive industry."

The company sells top car brands including Ford, BMW, Renault, Jaguar Land Rover, Volvo, Nissan, Mitsubishi and Kia.

The group employs nearly 200 people.

Mr Hedge said the insolvency of the parent company would not directly impact the ability of the business to continue operating under the receiver.

"And in fact provides the perfect opportunity or platform from which a new owner will take over the business," he said.

Mr Hedge said it would also be business as usual in the Roma, Dalby, Warwick and Chinchilla dealerships.

"They will continue to service their customers in the same way they always have."

Mr Hedge said those owed money by Southern Cross Automotive Group would be repaid where possible after the business and assets were sold.

"The more that the business can sell for, the more money that will be available to pay those who are owed money," he said.

Mr Hedge implored customers to support the business during the "transition".

"The staff are even more focused on providing the service that customers are looking for."

Southern Cross Automotive Group has been placed into receivership.
Southern Cross Automotive Group has been placed into receivership. Kevin Farmer

 


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