Peter Stevens Motorcycles Faces $65.9 Million Debt Amid Voluntary Administration

Founded in Melbourne in 1970 by the Chiodo family, Peter Stevens 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.

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.

Despite the circumstances, the administrators are continuing to meet employee entitlements incurred since entering administration. 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.