A 50-year-old Melbourne manufacturer and wholesaler of hot water and solar hot water products, making more than $8 million a year, has collapsed into administration, in yet another sign both the solar and manufacturing industries remain under harsh economic pressure.
The Melbourne wholesaler and manufacturer, Edson, was placed in administration last Thursday, with Robyn Erskine and Peter Goodin of Brooke Bird appointed. Both Edson and Brooke Bird were contacted by SmartCompany, but no reply was available prior to publication.
The administrators are now seeking expressions of interest for the manufacturer, which has been operating for 50 years in both domestic and international markets, turning over $8 million a year.
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Last year the solar industry took note when Solar Shop, one of the biggest names in the business with $70 million turnover, was placed in receivership.
Edson originally started manufacturing and distributing hot water systems and then moved into solar. All of Edson’s products are designed, engineered and assembled in Melbourne, using its own “evacuated tube” technology.
The company continues to trade.
The manufacturing industry in particular has been suffering a higher number of insolvencies, while solar companies have been under threat for some time as state governments have reduced tariffs and credits for purchasing solar products.
Earlier this year, solar energy company Beyond Building Systems collapsed on a $1 million debt to the Australian Tax Office. Last year, Solar Shop went under, while New South Wales-based Rewind Energy was also placed in liquidation.
Last year, Solar Energy Society chief executive John Grimes told SmartCompany the industry body had questioned its members and found a significant number were at risk of collapsing with hundreds of jobs at risk.