Bus and coach manufacturer Custom Coaches has been placed into administration and, as a result, 100 jobs may be lost.
Adelaide Now reports that parent company Alexander Dennis met on Thursday night and closed Custom Coach’s Adelaide and Sydney operations.
Australian Manufacturing Workers Union regional secretary Scott Batchelor told Adelaide Now, “At 11am they announced to workers that the company had been put into voluntary administration and the parent company, Alexander Dennis, no longer wishes to pour money into the company.’’
Mr Batchelor said that the company still has contracts with the South Australian State Government and that the company also has private sales.
The company has bus and coach manufacturing and maintenance facilities in NSW, QLD, South Australia, and Victoria.
South Australian Transport Minister Stephen Mullighan said that he was saddened by the news.
“We are monitoring the situation, and while all orders appear secure, if required Scania will fill our demand through existing contracts with alternate suppliers,” he said.
“Administrators Deloitte are operating the company for now, and I understand the parties are hopeful a sale is possible, which could allow the business to continue trading.’’