Wed, 04 Sep 2024 | BUSINESS SALE
The northern business of Lincolnshire agricultural machinery dealer The Burdens Group has been acquired out of administration in a pre-pack deal. The Boston-headquartered group fell into administration last month, having been hit by a range of headwinds over recent months.
The group’s southern business outlets in Sutterton and North Kyme were subsequently acquired out of administration by Ernest Doe & Sons, with administrators also completing a pre-pack sale of the remaining branches to Russell’s (Kirbymoorside) Limited.
The sale has secured 68 jobs from the company, reducing total creditor claims, with the significant remaining tangible assets that have not been sold set to be disposed of by Eddisons Commercial Limited. The remaining assets are likely to be sold via auction.
The Burdens Group, which had depots in Sutterton, North Kyme, Louth and Brigg, supplied a wide range of used and new farm and groundcare machinery, including products from manufacturers such as New Holland, JPM Trailers, Horizon and Amarzone. The group’s customers included farmers, potato growers and groundcare professionals across the UK. Burdens also had a division providing agricultural machinery for hire.
Despite its strong position in the agricultural machinery sector, the company experienced financial troubles following poor weather that has impacted the farming sector during 2023 and 2024. This resulted in poor crop yields, an issue that was exacerbated by changes to EU subsidies, leading to farmers reducing investments in new machinery.
This significantly impacted the group’s turnover, following a year in which it had already seen revenue drop as a result of issues relating to supply chains, rising interest rates and an economic downturn following the start of Russia’s war in Ukraine.
Gareth Rusling and Robert Dymond of Begbies Traynor were subsequently appointed as joint administrators of the group on August 19, completing a sale of the business and assets immediately upon their appointment.
Joint administrator Gareth Rusling commented: "Having traded successfully for more than 40 years, the Burdens Group was a victim of problems hitting the farming sector with bad weather and changes to EU subsidies resulting in its key customer base reducing their spend.”
"We worked hard to quickly conclude a sale to two experienced agricultural businesses, and it's fantastic that the sales have saved the jobs of 68 people."
Due diligence is even more vital than usual when acquiring distressed assets
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