Balgownie agricultural machinery business goes into administration
A NORTH-EAST agricultural machinery firm which has been trading since 1907 has been placed into administration.
Balgownie Limited and Balgownie Rentals Limited appointed Richard Bathgate and Graeme Bain of Johnston Carmichael LLP as joint administrators on March 15.
The company, which has depots in Inverurie and Turriff, said that 24 redundancies have taken place with 17 employees being retained to assist the joint administrators in marketing and selling the company asset’s.
Managing director Mike Singer said: “As a result of cash-flow issues, the board of directors is deeply saddened to announce that we have had to make the difficult decision to appoint administrators to the company with immediate effect.”
The joint administrators are assessing the stock and asset positions at the two depots to assess whether the business may be in a position to continue some limited trading in the short-term.
This would be under the administrators’ control while a purchaser is sought for the business as a going concern. Richard Bathgate of Johnston Carmichael
LLP said: “Balgownie is a wellrespected company that provides machinery to the agricultural, construction, and ground care industries in the north of Scotland.
“It has a trading history as far back as 1907 and is known for its quality and outstanding customer service.
“Unfortunately, following the identification of cash-flow difficulties, the board of directors has had to place both Balgownie Limited and Balgownie Rentals Limited into administration.
“I would encourage any party who may be interested in acquiring the business and its assets to contact Neil Woodgreaves of Johnston Carmichael.
“This is an opportunity to acquire the business and assets of a highly respected, long-established business which operates at its wholly-owned trading premises in Inverurie and Turriff, Aberdeenshire.”
Employees are being supported as far as possible and Partnership Action for Continuing Employment (PACE) will be offering free advice and assistance to employees.
Any amounts outstanding to suppliers at the date of administration will rank as a claim against the company in administration, and creditors will shortly receive a formal, written notification of the administration and the process for lodging a claim against the company.