Welsh farm machinery dealer Malpas Tractors has gone into administration
23rd December 2024
Welsh farm machinery dealer Malpas Tractors has gone into administration following cash difficulties and the recent death of its managing director.
The Wrexham-based business has been operating from depots across Denbigh, Cheshire and Lancashire, offering machinery from brands such as New Holland, Kuhn, and Bomford.
Malpas Tractors employed 69 staff, 43 of whom were made redundant in recent days. The rest of the team is set to keep the business running while the company is seeking potential buyers.
Joint administrators Patrick Lannagan and Richard Hough from Forvis Mazars were appointed on 16th December, North Wales Live reports.
Difficult year
In August, the company announced the death of its managing director, Paul Reeves.
In 2006 he took over Malpas Tractors from his parents, Edward and Rachael, who launched the firm in 1988 on the family farm in Malpas on the Welsh border.
Mr Reeves was described by his family and friends as “a much-loved leader, son and brother”.
People close to Mr Reeves honoured his memory on the company’s social media, calling him “most respectful boss”, “friend and someone we considered family”.
In 2022, Malpas Tractors reported a turnover of £42.4 million and a pre-tax profit of £956,000 with net current assets increasing to £4.9 million, however, the UK tractor market has been facing a range of challenges.
The Agricultural Engineers Association has reported a 15% decline in new tractor registrations for the first nine months of 2024 compared to the same period the previous year.
Steps into acquisition
Joint administrator Richard Hough said: “The company has experienced cash flow difficulties resulting from difficult trading conditions in the sector. These cash flow difficulties have led the directors to take the difficult decision to place the company into administration.
“The business is now operating with a reduced workforce whilst we explore any interest any potential buyers may have in the business. All known creditors are due to be contacted by the administrators in the coming days.”
The administrators are inviting interested parties to get in touch regarding the potential acquisition of the business or its assets, with further information available at malpastractors@mazars.co.uk.
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