News

Downturn Hits Companies Nationwide

Well in excess of a million pounds worth of plant, machinery and equipment . . . taken from recession-hit companies around the country . . . is to go under the hammer at a spectacular auction in North Lincolnshire next week.

Kit from as far away as Kent and Hampshire has been sent to the Scunthorpe saleroom of industrial auctioneers CJM Asset Management for inclusion in the auction on Tuesday (7th July).

“We are one of the leading centres in the country for the disposal of plant, machinery and stock,” said CJM director Paul Cooper, “and this auction is indicative of just how hard the recession is hitting firms all over the UK.”

"Whilst some of the lots are machines and equipment that are being disposed of after upgrading, the vast majority of the entries are high quality, modern, kit that is having to be sold simply because firms have gone under in the tough conditions.”

"The speed of the downturn has clearly taken many firms by surprise. We have, for example, been sent two massively expensive Okuma and Howa CNC machining centres, state of the art computerised pieces of equipment, which have been repossessed by a finance company from a Bradford firm. They were bought just two years ago at a cost of half a million pounds – each.”

“At auction they will probably make £50,000 - £70,000 apiece.”

“Also from our region we have been sent all the machinery, tooling and equipment from Mode 3 Tooling Limited of National Avenue in Hull. The firm, which manufactured moulds for the plastics industry, went into liquidation a couple of weeks ago.”

"They operated in a very competitive market and the downturn in demand caused by the recession has done for them.”

“They were operating with both CNC - which is to say computer numerical control – and conventional machine tools. The star lot from Mode 3 is also a CNC machining centre, this time expected to make £2000 - £4000.”

Paul added: “We’ve been sent the entire stock of The Power Tool Warehouse in Southampton, a tool hire company, which was seized in lieu of unpaid rent by bailiffs acting on behalf of the firm’s landlord.”

“That amounts to two or three hundred lots and includes all the things such a business hired out, from power drills, cutters and welders up to scaffolding towers and trailer-mounted fuel bowsers, and generators.”

“The construction industry has of course been particularly hard hit and also from the south coast we have been sent a large quantity of augers, huge drills used in piling. They have come from a Maidstone company called Greaves Surveying and Engineering, specialists in piling rig hire, who went into administration at the beginning of May and we are acting for a finance company.”

“The same finance company has also sent a one year old 25-tonne Chieftain tri-axle plant trailer that looks like it came out of the factory yesterday.”

Much of the office furniture and equipment in the auction has come from two local companies that have closed their doors – Oliver Construction based in Immingham, which went into administration at the end of April, and Crown Consultants (GY) Limited of Railway Street in Grimsby, who were finance brokers to the motor industry.

In total the sale extends to over 1000 lots. The viewing sessions are on Monday (July 6th) 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.