Ferrier Hodgson, a company specializing in insolvency, confirmed that Steven Sherman and Jim Sarantinos were appointed as receivers and managers of the companies of auto dealer Rick Damelian Group.
"The receivers, together with their staff will be working with various manufacturers to determine the future course of action with respect to the Group, including exploring whether the business can be sold and the operations continued," Ferrier Hodgson said in a statement posted on its website.
The Rick Damelian Group is located on Parramatta Road in Sydney’s inner west and comprises of the following nine motor vehicle dealerships: Honda, Suzuki, Renault, Citroen, Fiat, Alfa, Prestige, Skoda and a used car dealership.
Skoda, however, is not subject to the receivership.
According to Sydney Morning Herald, the Group owned about $80 million in debts. The Group was founded in November 1978 by its Chairman and Managing Director, Rick Damelian.
The recievers requested the Group's customers not to bring their vehicles to the dealership for servicing at the moment.
"Servicing of vehicles has been suspended until further notice. Our discussions with the manufacturers will result in clarity with respect to the ongoing service requirements," the receivers said.
The receivers, together with their staff are also in the process of working with the various manufacturers to clarify the position of new car warranties and in particular, confirming whether these will continue to be honored by the car manufacturers.
"This will include determining whether other dealerships can service a vehicle under the terms of the warranty," the receivers said.
It added that all new sales activity from the Group has been suspended.
Ferrier Hodgson is Asia Pacific’s most widely recognised and highly respected provider of turnaround, reconstruction and forensics services. The Ferrier Hodgson Group has over 30 partners and 300 staff and offices in all major Australian capital cities, Singapore, Malaysia, Indonesia and Japan.