News

Downturn hitting hard!

The severity of the credit crunch and the problems affecting the economy will be starkly displayed in North Lincolnshire next week when over half a million pounds worth of stock, machinery and equipment goes under the auctioneer’s hammer.

              All of it has come from regional companies . . . operating in everything from the construction to retailing . . . that have hit the buffers in recent weeks.

              The astonishing range of lots goes from huge piling machines to kitchens, bathrooms and garden furniture.

              Paul Cooper, a director of industrial auctioneers CJM Asset Management, said: “The number of insolvency instructions we’ve been getting has been rising steadily this year but in the past few weeks things have just been unreal.”

              “The quantities of kit being sent to us are now so huge that we have run out of space at our Brigg Road centre and we have had to take additional storage space in the town to hold stuff until we can bring it on site.”

              “The star lots in next Tuesday’s auction are two piling rigs that have come from a Burton-on-Trent construction company called Foundex (UK) Ltd that has gone into liquidation after work just dried up.”

              “They were apparently working on a big residential housing project in the region and the developers just pulled the plug on it overnight. They were left with a quarter of a million pounds worth of machinery just sitting there.”

              “The machines are just a year old. The larger rig is expected to sell for £100,000 - £120,000 at auction. A mini rig is expected to make another £20,000 - £30,000.”

              “We’ve also been sent various other items of equipment including a trailer mounted compressor, tools, a transit van and even the site manager’s 54 plate Hyundai Sante Fe.”

 “Another firm that’s gone under is A.H. Construction of Boston, which specialised in roadworks. From there we have been sent a range of good quality kit that includes site storage containers, van vaults for the secure storage of tools, and a secure fuel storage unit. Given the problem that people are now having with fuel thieves, we’re expecting there will quite a lot of interest in that.”

“Also from south Lincolnshire we have been sent the assets of a landscaping company that has gone into liquidation. The high value lots there include a John Deere 955 compact tractor and a Skidster mini-loader, as well as a decent trailer and tools.”

              Paul added: “Undoubtedly the section of the auction that will attract most attention so far as the general public is concerned is around 200 lots of top quality teak garden furniture that has been sent for disposal following the collapse of a Lincolnshire retailer called Stonebow Leisure.”

              “We sold part of their stock earlier this year but this was held by their warehouse landlord in lieu of unpaid rent. The stock that was held in the warehouse was the slower selling part of the range . . . the most expensive items . . .  so this is not only the last of it but also the best of it.”

              “At retail values we have in excess of eighty thousand pounds worth of teak garden furniture, everything from garden benches and steamer chairs to tables and parasols.”

              “The kitchens and bathrooms have come from a Worksop company that has gone bust. They’re all top end stuff, much of it German.”

              A strong commercial vehicles section includes a 2006 Broshius extending tri-axle trailer for an articulated lorry that is expected to make £30,000 - £35,000.

              The heavy engineering equipment on offer will include two robot welding cells that have been sent for sale by a retained client in Scotland.

In all the sale extends to close to over 900 lots. The viewing sessions are on Monday (4th August) 1pm-7pm and on Tuesday morning from 8.30am until the start of the sale at 10 am. Catalogues are available from CJM or can be downloaded from the firm’s website: www.cjmasset.com free of charge.

For further information or comment please contact Paul Cooper at CJM Asset Management on 01724-334411.