Administrators reveal full extent of financial exposure, including $2.1 million in customer deposits and $26.5 million in secured loans
Peter Stevens Motorcycles, one of Australia’s largest and longest-standing motorcycle retailers, entered voluntary administration in May, with total debts reported to exceed $65 million. The development impacts approximately 400 employees and numerous customers across the company’s dealership network.
Founded in Melbourne in 1970 by the Chiodo family, Peter Stevens had expanded to 15 locations across Victoria, South Australia, New South Wales, and Western Australia. The business includes both its own branded dealerships and franchise operations such as Ducati, Triumph and Harley-Heaven. At the time of its administration, Peter Stevens reported an annual turnover of around $250 million, with operations covering new and used motorcycle sales, parts and accessories, service, insurance, and finance.
Documents lodged with the Australian Securities and Investments Commission (ASIC) outline the full extent of the company’s financial position. According to a report by company director Luc Favre, the group owes a total of $65.9 million to its creditors. Employee entitlements are listed at $1.6 million, while customer deposits total over $2.13 million.
The report also notes that the business owes the Australian Taxation Office approximately $4.5 million in deferred tax and $318,586 in GST. A further $4 million is owed to related companies, VC Motorcycles and Motorcycle Dealership Group.
Westpac is identified as a secured creditor, with $7.6 million owed to the bank. An additional $26.5 million in retail floor plan financing – commonly used by motorcycle and automotive dealers to manage stock purchases – has been recorded as secured debt. Lease obligations account for another $15.1 million.
Offsetting these liabilities, the company’s assets include approximately $42 million in inventory, $1.2 million in cash, and a $5.7 million deferred tax asset. The business is also owed around $1.4 million, including payments pending for motorcycles, spare parts, and other prepayments.
At the first creditors meeting, administrators Craig Shepard, Michael Korda and Andrew Knight of KordaMentha advised it was still too early to determine whether unsecured creditors would receive any payments.
“Craig mentioned that it was too early to provide a conclusive answer as the results depend on the sale of business outcome,” the meeting minutes lodged with ASIC stated.
“Craig stated that by law, if a customer has paid a deposit, they become a creditor of the company. It was suggested that if the customer has paid by credit card, that they could request a chargeback to the card issuer.”
Administrators confirmed the business continues to operate at all dealership locations for the time being. However, online trading has been paused while expressions of interest are sought for the whole business or select parts of it.
“Craig noted expressions of interest were for a combination of all or parts of the business,” the minutes noted.
Despite the circumstances, the administrators are continuing to meet employee entitlements incurred since entering administration. “Craig also noted that the shareholder had provided funding to ensure that post-appointment entitlements were paid,” the report indicated.
The administrators have kept all dealership locations open while they assess the business and consider potential sales. Online trading has been paused. According to meeting minutes filed with ASIC, expressions of interest have already been received from multiple parties, some seeking the entire business, others interested in parts of it.
Administrators also confirmed that the business continues to operate and that employee entitlements accrued following their appointment are being met. Funding has been provided by the shareholder to ensure the continuation of payments.
While the company’s future is yet to be determined, work continues behind the scenes to preserve value and potentially maintain business continuity under new ownership.
Peter Stevens has also announced discounts for new and used motorcycle stock on hand of up to 50% until June 25th 2025.
