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Patricia100

Lunar Caravans In Administration

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I bought a 2016 Lunar Delta last year, had some water ingress and made arrangements to have it sorted through the manufacturers warranty.  I've now been told that Lunar have gone into liquidation at the weekend and the service department was told by Lunar to stop all work to be carried out on warranty. 

 

This has now got me really worried about obtaining parts for future repairs to my caravan and the resale/part exchange value of my caravan

The work isn't being carried out by my original dealer as they don't personally undertake bodywork but using a firm that they referred me to.  The parts have arrived so there's no delay in that respect, but they received notification from Luna to stop all warranty work as of Thursday last week.  They were told that Luna were looking to get a buyer and if none were received by the weekend then they would be going into liquidation.  

 

 

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According to Companies House records, not a spurious dealer, Lunar Caravans are still a going concern.

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30 minutes ago, Black Grouse said:

 

Refer this back to your selling dealer - they, and they alone, have the legal responsibilities - they'll probably need reminding of that, quite forcibly.

 

As BG says, legally your selling dealer is responsible for repairs, not Lunar. Lunar's warranty effectively only provides a method for repairing dealers to get recompense for any work they do on the van. The fact that a manufacturer can't or won't honour a warranty is of no matter to the van owner, the legal responsibility is the supplying retailer's, whether they get paid by the manufacturer or not. In this case your repairer should be getting instruction from your supplying dealer to carry on with the repair. 

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It's said that caravan sales are well down this year, with lots of unsold stock. If Lunar have laid off staff early it's understandable if there's little likelihood of vans selling in the near future. In turn stock that's hanging around will have cost money to build and store.

 

Even if  warranties are voided by the business closing or changing limited entity the responsibility for repairs are the selling dealer's and legally they have to meet their liabilities under CRA.

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Hi all

Took my Lunar in for its year 2 service to be told it needs some warranty work.  The service centre has just phoned to say all warranty work cancelled by Lunar and no parts to be supplied ! I have just phoned Lunar direct who told me as of 16th July they have the Administrators in so couldn't answer any questions about anything.

So contrary to their previous replies on the last few posts they are not shut down for a break or over stock but do indeed have the Administrators in and that information comes from them direct. 

I guess I'm going to have to struggle with trying to get Swindon caravans to do the warranty work as they are obliged to do anyway !

 

Joy joy joy 

Good luck everybody

 

Duncan 

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The appointment of an Administrator is not the same as appointing a Liquidator.  A Liquidator will liquidate the business to provide as much return as possible to the shareholders. An Administrator will run the business whilst attempting to save it or save parts of it. 

 

There are a number of options.

  • Negotiate additional funding from banks 
  • Negotiate sale or part sale to interested parties
  • Negotiate a Voluntary Arrangement where suppliers and others owed money accept a haircut on their outstanding debts to allow the business to continue trading.
  • If all these options fail, then a Liquidator will be appointed.

Some of the options can require a new legal entity to assume running the business and they may, or may not decide to honour previous commitments, like warranties. However as said before the responsibility for honouring CRA issues is the selling dealerships, lack of warranty support from the manufacturer does not excuse their liability.

 

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There is no indication from the London Gazette today that Lunar caravans Limited or Lunar Holdings limited are in Administration.

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Looks like it’s true

 

382A5AF4-A199-4E86-A8F2-66FCB7DB4C6B.thumb.jpeg.1c53b6d3dc1c0d934ffca8af8f3723e1.jpeg

Source was the lunar technical support Facebook group.

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I've messaged Steve with a document which should hopefully clarify the situation.

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That does clarify the situation, thanks.

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Might explain the quite large discounts currently available on Lunar models ,  nearly £7000 on Alaria & over £5000 on Clubman.

shame though , hope they sort something out .

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Difference Between Liquidation and Administration. ... The primary difference between the two procedures is that company administration aims to help the company repay debts in order to escape insolvency (if possible), whereas liquidation is the process of selling all assets before dissolving the company completely.

 

In Administration there is hope, in Liquidation there is not.

 

BH

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5 minutes ago, Blackhart said:

Difference Between Liquidation and Administration. ... The primary difference between the two procedures is that company administration aims to help the company repay debts in order to escape insolvency (if possible), whereas liquidation is the process of selling all assets before dissolving the company completely.

 

In Administration there is hope, in Liquidation there is not.

 

BH

 

Like wot Andy said 5 hours ago! 

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I have had it confirmed from an industry source that Lunar are in administration.

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16 hours ago, D Lunar said:

Hi all

Took my Lunar in for its year 2 service to be told it needs some warranty work.  The service centre has just phoned to say all warranty work cancelled by Lunar and no parts to be supplied ! I have just phoned Lunar direct who told me as of 16th July they have the Administrators in so couldn't answer any questions about anything.

So contrary to their previous replies on the last few posts they are not shut down for a break or over stock but do indeed have the Administrators in and that information comes from them direct. 

I guess I'm going to have to struggle with trying to get Swindon caravans to do the warranty work as they are obliged to do anyway !

 

Joy joy joy 

Good luck everybody

 

Duncan 

My van has just had a delayed second service also.

When it was just a few months old a serious leak occurred and as I use an independent service centre who are authorised by Lunar, and other makes, to carry out warranty work, I contacted them and took the van in to be assessed.

 

They decided that due to issues with both Lunar and the supplying dealer, Swindon Caravans, previously they were not prepared to take on the work so I arranged with Swindon to collect the van, from Cornwall, and carry out the repairs.

 

At this service no issues were found however I had pointed out a misaligned front window when I dropped it off and was told they would sort it without recourse to Lunar due to the hassle this created being not worth the trouble.

 

As said the dealer is responsible but my experiences with almost all has been that once you are out of the door and they have your money you seem to find a willingness to help reduces and this will only add to that I suspect.

 

As said by others though it is a sad day for those employees facing an uncertain future.

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On 16/07/2019 at 09:51, Blackhart said:

This seems quite normal in this industry, as they are fairly old fashioned in their values (not their prices though). 

They seem to have been having a difficult time with quality for the last couple of years and also trouble supplying replacement parts which indicates a cash flow problem with suppliers. 

The caravan dealers place their orders in September for the following year, but I think they have a credit arrangement and pay when they are sold to us ( or some do anyway), so maybe lots of Lunars are unsold from this years models hence no income

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If you manufacture items and many of those items have to have warranty work done on them due to no quality control at time of manufacture and you have to pay a third party to do the work, after awhile you will have a cashflow problem.

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42 minutes ago, Benny65 said:

This seems quite normal in this industry, as they are fairly old fashioned in their values (not their prices though). 

They seem to have been having a difficult time with quality for the last couple of years and also trouble supplying replacement parts which indicates a cash flow problem with suppliers. 

The caravan dealers place their orders in September for the following year, but I think they have a credit arrangement and pay when they are sold to us ( or some do anyway), so maybe lots of Lunars are unsold from this years models hence no income

May be interesting,  but hardly representative of the place and people I know.

44 minutes ago, Benny65 said:

This seems quite normal in this industry, as they are fairly old fashioned in their values (not their prices though). 

They seem to have been having a difficult time with quality for the last couple of years and also trouble supplying replacement parts which indicates a cash flow problem with suppliers. 

The caravan dealers place their orders in September for the following year, but I think they have a credit arrangement and pay when they are sold to us ( or some do anyway), so maybe lots of Lunars are unsold from this years models hence no income

This is closer to the mark

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Bit sad all round.But prob oreso all the workers,and not forgetting folk that have paid deposits etc

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Just seen this on Robinson’s website , so hopefully my insurance repairs may be covered , it might apply to other Lunar dealers as well .

 

https://www.robinsonscaravans.co.uk/official-statement-about-lunar-caravans 

 

lunar website is now now shut down  , there is a statement from the new administrators.

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