Dutton Direct, an online classifieds site dedicated to luxury cars, planes, properties and boats that was set up five years ago by a fourth-generation member of Melbourne’s famous Dutton family, has been placed in liquidation.
The company, established in 2004 by James Dutton, collapsed in late June and has been put in the hands of liquidators from Melbourne insolvency firm Vince & Associates.
The Dutton family is famous in Melbourne for their luxury sports car dealership, which was established in 1911. The family’s main business is Dutton Sporting Cars, which sells brands including Porsche, Ferrari and Buggatti and is run by James Dutton’s father, Jeff Dutton.
A spokesman for Dutton Sporting Cars confirmed there is no business connection between the two businesses.
Kylie Wright from Vince & Associates told SmartCompany that a meeting of creditors is scheduled for July 8, but it is too early to say what caused the company’s collapse.
“Our aim at the moment is to conduct some investigations and try to figure out what happened.”
The company is believed to have debts of almost $900,000, with over $500,000 owed to a secured creditor, about $340,000 owed to unsecured creditors and about $25,000 owed for employee entitlements.
James Dutton started the company with the intention of building an online classifieds business off the back of his family’s reputation in the luxury goods sector.
“I thought why not do something on another level, where people can use the [Dutton] name, because of the history and heritage behind it, and create a platform where people can advertise it themselves,” he told Dynamic Business in 2006.
It is believed more than $1 million was sunk into the website’s development. Sellers paid a listing fee to advertise their luxury car, boat, jet or property and the Dutton Director also sold advertising to luxury brands.
The company had also set up licensing arrangements to take the concept overseas, but it appears these expansion plans did not bear fruit.
Dutton, who previously worked as a carpenter, at JB Hi-Fi and in the family business, has also had success in rally car driving and jet-ski racing.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
