The Australian caravan industry has just received its loudest wake-up call in a decade. The official sale of Zone RV’s assets to Melbourne-based Essential Caravans’ director, Jamie Johnson, is more than a simple business transaction; it is a “hard reset” for how every Australian will buy a caravan from now on.
Earlier, Zone RV entered administration, leaving customers and staff in limbo.
For years, the industry has operated under a “Venture Manufacturing” system where high-end builders used massive customer deposits to fund their own research and daily operations. The collapse of Zone RV represents the official end of that era and the beginning of what we are calling the Industrialization of Trust.
The Collapse by the Numbers
To understand the scale of the fallout, the report from liquidators provides a grim forensic look at the damage:
- $42 million: The total estimated debt left behind by the failed entity
- $10 million to $15 million: The amount lost by approximately 150 families who paid for caravans that will never be built
- 80%: The portion of the total purchase price some customers had already paid before their build even hit the assembly line
- 240: Redundancies made abruptly just weeks before Christmas as factory doors were shuttered
In response to the fallout, Kokoda Caravans has pledged financial support and assistance to customers affected by the Zone RV administration, signalling a broader industry effort to rebuild confidence and protect buyers caught in the collapse.
Innovation vs. Stability
Zone RV was a technical pioneer. By utilizing carbon fiber and aeronautical composites, they solved the weight crisis for heavy off-roaders . However, the liquidator’s investigation found the company likely traded while insolvent from as early as August 2023.
For the traveler, the message is clear: the most advanced suspension or lithium setup is worthless if the manufacturer isn’t fiscally stable. The “Industrialization of Trust” means shifting the financial burden back to the manufacturer, where it belongs.
The New Standard for Buyers
Under the new leadership of Jamie Johnson, the business model at Zone RV is being completely overhauled to match a more conservative operating model.
| Feature | The Old Zone RV Model | The New Essential/Zone Standard |
| Initial Deposit | 5% | 10% Fixed |
| Progress Payments | 40% (Build start) + 35% (Pre-delivery) | $0 until completion |
| Financial Risk | High: Customer funds the factory | Low: Manufacturer funds the build |
| Balance Due | 20% at Handover | 90% at Handover |
A Bittersweet Rescue
Jamie Johnson told the ABC he felt “sick in the stomach” for the families who lost their life savings. While his new entity cannot legally absorb the $42 million in prior debt, he has offered the “Unbuilt 150” the chance to purchase a new caravan at cost price.
For some, it is a lifeline to finally get on the road. For others who lost six-figure sums, it is a “tough pill to swallow,” as it requires finding tens of thousands of dollars more for a dream they already funded once.
The Bottom Line
The Coolum factory remains open, the innovative tech survives, and jobs are slowly returning. But the rules for What’s Up Downunder readers have changed.
If you’re planning to buy a caravan, read Buying a Caravan in 2026: How to Buy with Confidence.
When you order your next van, verify the builder’s stability as much as their specs. The era of the “Customer-as-Banker” is over. From now on, your deposit should be a commitment, not an interest-free loan for a manufacturer’s expansion.
