ANOTHER DEALERSHIP ENTERS ADMINISTRATION

PICTURED ABOVE: Balgownie's md Mike Singer (right) and sales manager Stuart Allan, pictured in Service Dealer in January 2023 when the dealership took on the Mean Green and Altoz mower ranges

Following last week's news about Suffolk Agri, we've heard that another dealership has entered administration - and is now trading to a limited degree under the control of the Joint Administrators.

Aberdeenshire-based dealers Balgownie Limited appointed Richard Bathgate and Graeme Bain of Johnston Carmichael as Joint Administrators last Friday, March 15h 2024.

There was confusion initially over the weekend when the company's website and social media said the dealership was closed for an "annual stock take".

However, the administration was confirmed publicly on Monday this week (March 18th), when an Administrator's notice went up on Balgownie's website.

The BBC reported that 24 employees have lost their jobs with immediate effect, with 17 workers retained to help try and sell the company's assets.

STV News meanwhile, quoted the dealership's managing director, Mike Singer, as saying, “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.”

One of the administrators, Richard Bathgate, issued a statement describing Balgownie as “a well-respected company known for its outstanding customer service."

He continued, “It has a trading history as far back as 1907 and is known for its quality and outstanding customer service.

“Unfortunately following the identification of cashflow difficulties, the board of directors has had to place both Balgownie Limited and Balgownie Rentals Limited into Administration."

On the initial notice pinned to Balgowie's website the Administrators said they were assessing the stock and asset position at each of the sites operated by Balgownie "to determine whether the business may be in a position to continue to trade in the short term, under the Administrators’ control, whilst a purchaser is sought for the business as a going concern."

Limited trading

Yesterday however (Thursday March 21st), a new notice from the administrators appeared saying that Ifor Williams Trailers products and parts remain for sale through Balgownie (in administration). A statement from Carole Williams, director of Ifor Williams Trailers, said, “We have moved rapidly to work with the Joint Administrators of Balgownie Ltd to minimise disruption to our customers and we are pleased to announce that our well-kept trailers and Genuine Parts continue to be available for sale from Balgownie Ltd through its Joint Administrators. 

“We are pleased with the professional services offered by the Joint Administrators of Balgownie Ltd and we are confident that a supportive role between all businesses will provide the best outcome for all parties involved.

“We hope that our swift action will ensure our products and Genuine Parts continue to be available to our customers and this demonstrates our commitment to delivering high quality products, with reliable service in the North East of Scotland.”

Richard Bathgate, added, "The Ifor Williams Trailers team has worked rapidly and thoroughly to ensure any disruption to their customers was minimised and we are grateful for their rapid assistance."

Most other product categories on Balgownie's website remain blank.