North-east agricultural machinery firm Balgownie placed into administration

Agricultural machinery firm Balgownie has been placed into administration citing ”cash flow issues”.

Balgownie Limited and Balgownie Rentals Limited formally appointed Richard Bathgate and Graeme Bain of Johnston Carmichael LLP as joint administrators on March 15.

With two depots in Turriff and Inverurie it is understood that 24 staff have been made redundant while another 17 employees are being retained to assist the joint administrators in marketing and selling the company’s issues.

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.”

Administrators started assessing the stock and asset positions at the two depots at the weekend to assess whether the business may be in a position to continue some limited trading in the short-term under the administrators’ control whilst a purchaser is sought for the business.

Parties interested in acquiring the business and its assets should contact Neil Woodgreaves of Johnston Carmichael.

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.

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