increase font size
Reese Engineering is the company behind the Aitchison brand known for seeders, rollers and spreaders.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
Liquidators Ecovis KGA are now considering selling Reese Engineering, the company behind the Aitchison brand known for seeders, rollers, spreaders and bale feeders and well-known UFO mowers, manufactured at facilities in the Manawatu region, for supply to the home and export markets.
The brand was established more than 50 years ago by former NZ rower Peter Aitchison, but more recently has been owned by Ross and Anne Simpson’s Simpro Holdings.
The liquidators first report suggests that the business’ collapse had been caused by the downturn in the sector, both in NZ and Australia, with a “stagnating” sales and order pipeline leading to oversupply of inventory in the market. They also note that losses had occurred after a “significant” customer order was cancelled at the end of 2023.
After the liquidators were appointed, Reese Engineering ceased trading and terminated staff, leading to the primary objective of trying to achieve a sale for the business, which if not possible, would unfortunately lead to a disposal auction of the company’s assets.
Total liabilities were estimated at around $6.6m, of which $3.1m was owed to CMI Ltd – an entity also owned by Simpro Holdings. Meanwhile, Westpac was owed $2.3m, trade creditors are owed $587,000 and $174,000 was owed in employee wages and holiday pay. The company is said to be owed $428,000 from customers, with related parties also owing a further $1.1m.
Total assets are said to be to $4.1m, although at this stage the liquidators have withheld the value of the fixed assets and intellectual property. While the machine inventory carried a book value of $2.5m, the report noted it included slowmoving and obsolete stock, with the realisable value likely to be substantially lower than book value.
While feeding dairy animals in New Zealand is largely centred around feed trailers, mixer wagons or baleage, one wonders whether there is a place for robotic feeders, particularly in South Island locations, where cows are housed during winter or full time.
Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range of transport solutions, from their base in Bavaria.
Case IH is expanding its popular Puma range in New Zealand, with a new model that was released at Fieldays.
It seems that tractor manufacturers will go to great efforts to promote the versatility and durability of their offerings, a recent example being a Massey Ferguson with an 8S tractor entered into the Morocco Desert Challenge.
As if there wasn’t enough choice in the New Zealand ute market, LDV New Zealand is expanding its offering, by showcasing the all-new Terron 9 Elite at Fieldays.
Profitability issues facing arable farmers are the same across the world, says New Zealand's special agricultural trade envoy Hamish Marr.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Tighter beef and lamb production globally have worked to the advantage of NZ, according to the Meat Industry Association (MIA).
Groundswell is ramping up its 'Quit Paris' campaign with signs going up all over the country.
Some farmers in the Nelson region are facing up to five years of hard work to repair their damaged properties caused by the recent devastating floods.
Federated Farmers is joining major industry-good bodies in not advocating for the Government to withdraw from the Paris Agreement.
OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its…
OPINION: An animal activist organisation is calling for an investigation into the use of dairy cows in sexuallly explicit content…
