Damelian’s demise will have little impact: Ateco

ONE of Sydney’s largest automotive retail groups has been placed into receivership, leaving brands including Honda, Suzuki, Renault, Alfa Romeo, Citroen and Fiat without representation in the nine high-profile dealerships previously operated by the Rick Damelian Group in southwest Sydney.

However, the independent vehicle distributor with the most brands involved, Ateco Automotive, says it will not be impacted by the shock move on Monday (September 5), which comes just two weeks after Damelian Automobile failed to sell its disused Parramatta Road car yard holdings.

“In the short-term, our existing dealer network in Sydney will take up the business,” said Ateco spokesman Edward Rowe, adding that new and existing outlets for its Alfa, Fiat and Citroen brands would handle the sales and servicing vacuum created by the Damelian group’s demise.

“A major new dealership recently opened in Parramatta, Grand Motors, which covers all of these brands, and we also have McCarrolls on the north shore at Artarmon for all the brands and the Citroen specialists, Continental Cars, in Roselands, with its unique history with Citroen. Additionally, we have parts and service centres for the brands just to the south of Sydney, too.



Left: The Rick Damelian public website features these images of the facility's on-site gym and library available to service clients.

“Our dealer development team will now also be looking to appoint a new dealer in the southern side of Sydney in the medium term. Until this happens, we are fully confident that the teams at Grand Motors, McCarrolls and Continental Cars, as well as the service centres at City Alfa and Paradise Garage, will be able to meet the needs of our customers and those people wishing to buy a new Alfa Romeo, Fiat or Citroen vehicle,” said Mr Rowe.

GoAuto understands the Damelian group’s Citroen outlet sold an average of about 10 vehicles a month, while its Alfa and Fiat dealerships averaged a total of about 15 monthly sales, totalling about 300 vehicles annually for Ateco.

While Rick Damelian’s Skoda dealership is not affected, Honda was believed to be the Damelian group’s biggest brand by both volume and revenue, but the ailing Japanese brand would not comment on the situation.

“Honda Australia has received notification that Ferrier Hodgson has been appointed receivers and managers of Rick Damelian Pty Ltd,” it said in a statement.

“Honda customers who are unable to contact the dealership should ring Honda Australia Customer Service on 1800 804 954. It is inappropriate for us to speculate any further.”Rick Damelian Honda was one of Australia’s top Honda dealerships, earning more than 30 awards for excellence between 1994 and 2006.

Rick Damelian is a colourful Sydney business identity with interests in a wide range of business activities, including the failed Strathfield Car Audio chain, who had a reputation for looking after the automotive needs of celebrities including Lara Bingle.

The Damelian group’s automotive empire spanned both sides of Parramatta Road in Leichhardt and Petersham, and was founded in November 1978.

A report by Property Observer yesterday said three redundant Damelian properties were unsuccessfully auctioned two weeks ago, including 587-595 Parramatta Road in Petersham, which was passed in on a $2.4 million vendor bid, 680-716 Parramatta Road in Petersham, which was passed in with no bid, and 509-529 Parramatta Road in Leichhardt, which was passed in on a $1.9 million vendor bid.

According to Property Observer, the appointment of Ferrier Hodgson partners Steve Sherman and Jim Sarantinos as receivers and managers follows an extended period of support by the creditor, who is owed about $80 million by the Damelian group.

Ferrier Hodgson has advised that customers who have placed a deposit on a new vehicle at a Rick Damelian Group dealership will receive their vehicle and that all new-vehicle warranties (but not extended-warranties purchased from the Group) will remain intact.