A consortium has acquired troubled bus manufacturer Custom Coaches, with all manufacturing at the bus maker's Adelaide site to end.
Custom was put in administration on May 30, and at the time employed about 300. The ABC reports that only 120 jobs across its Adelaide and Sydney sites will remain at the new company, with all manufacturing to be carried out at Sydney.
It was earlier reported that Custom Coaches would likely close its Royal Park site.
The company was a year into a five-year contract to supply buses to the South Australian government’s departments of transport and education.
The 62 workers in Adelaide site – which will became a purely after-sales operation – losing jobs would have to fight for their full entitlements, according to the AMWU. Only 13 jobs would remain in Adelaide.
"From what I understand they will get 70 per cent of their annual and long service [leave], that's all, they won't get a redundancy," the union’s Scott Bachelor told the ABC.
The company’s new owner is a consortium led by funds manager Allegro Funds and the bus manufacturer has re-branded as Custom Bus Australia.
Allegro’s Adrian Loader, chairman of the new company, said he was pleased at the speed of the transaction and believed the Custom would resume building the “best buses in Australia”.
According to Allegro’s website, its specialises in mid-sized firms where it invests “in situations where our capital and skills affect a fundamental shift in business direction.”