05/05/2020
John Davis Motor Group News-
Thank you for all the positive support from our post yesterday explaining that JDMG will not be re locating to the "Old Bunnings" site due to COVID-19 and the current market conditions.
The CWD has decided to run a sensationalised article today about the company that was setup solely for the purchase of the site. Here are some facts that were sent to the CWD prior to their story-
1- Davis Investment Group Holdings Pty Ltd was solely established for the single transaction of purchasing the “Old Bunnings” site. (single purpose entity)
2- Davis Investment Group Holdings Pty Ltd although having the same directors as John Davis Motors, is totally separate. Davis Investment Group Holdings Pty Ltd was to be the owner of the site and John Davis Motors was to be the tenant.
3- Due to conditions not being met and the effect COVID-19 is having on the motor industry, the purchase did not proceed and subsequently Davis Investment Group Holdings Pty Ltd has been wound up as this entity is no longer required.
John Davis Motors has spent a lot of time and money in getting consultants, designs, reports and submissions to be able to submit a DA application and at the same time Sentinel Property Group worked to also get their conditions of the contract met.
The facts are both Sentinel Property Group and Davis Investment Group Holdings requested and agreed to extending the term of the contract on multiple occasions while both parties worked together to try and meet their conditions, neither party held the other up. Mr Elbert Managing Director of Sentinel Property Group says in the CWD article that Davis Investment Group Holdings asked for numerous extensions, the facts are both parties requested and agreed to extensions over the period based on how they were progressing with their conditions of the contract.
It is understandable that Mr Elbert is frustrated & disappointed. We understand this and we are also very disappointed.
Unfortunately Mr Elbert & Sentinel Property Group have decided to take the legal path and to try and force the contract to proceed, instead of agreeing that its a terrible situation for all involved and that it is no ones fault as COVID-19 is out of anyone's control and we are in unprecedented times. The decision to validly terminate the contract was made as a direct result of COVID-19 and the huge effects this global pandemic is having on the car industry and our business. In simple terms we cannot afford to risk the health of our business to proceed with a sale in the current market.
Early reports suggest the New Car Market in Australia will be down between 50-60% in April.
Just like many businesses in the Central West, John & I have a responsibility to our fantastic staff, our much loved families and our brilliant customers to make tough business decisions that ensure the longevity of the business. COVID-19 is out of everyone's control and we, like many other businesses need to bunker down and ride it through.
We are a family business of 37yrs and have supported the Central West community with sponsorship's of local events, sporting clubs, charities, community groups and health groups. Our goal is to get through COVID-19 and to be in a position to continue this support of the Central West as our way of saying thank you to all our fantastic customers.
We would have loved for the market to be buoyant, we would have loved for COVID-19 not to be affecting the world and we would have preferred to not be in a position where we had to make this decision, but unfortunately we are.
John Davis Motor Group is Open for business, working hard to provide our continued high level of service to our valued customers and we take the opportunity to thank everyone for the support.
