Mustang Marine enters voluntary administration
by Jeni Bone on 22 Mar 2010
Launches of new models strained the company’’s finances. Mustang Marine
Mustang Marine has entered voluntary administration for the second time in as many years, with 50 jobs lost and all but essential work being carried out.
The Johannesburg-based owner, Standard Bank Asia Limited, decided to withdraw financial support for the company, following a “patchy year” according to CEO, Chris Heaton.
Heaton confirmed the company had been negotiating with two potential partners in the past two months following poor sales in the first quarter of this year in contrast to Mustang’s good growth in 2009.
Heaton stated that expenditure on new models was the cause of much of the financial distress, along with a fire that hit a “critical supplier” and impeded new product releases. Heaton believes “there definitely still is a future for Mustang”.
Mustang said the administration period would be used to seek a new financial backer and that all boats underway and on order would continue to be built and delivered as promised.
The first creditors' meeting will be held within 10 days.
Standard Bank Asia Limited, an investment arm of the South African Standard Bank based in Hong Kong, emerged as a white knight for Mustang in early 2008 after 12 weeks of receivership.
There are still around 30 people working at its Ernest facilities on the Gold Coast, and for the meantime, Mustang is planning to exhibit at Sanctuary Cove International Boat Show in May.
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