The Combine Forum banner

1 - 20 of 111 Posts

·
Registered
Joined
·
4,018 Posts
The article in the producer said in 2017, they restructured for the upcoming upswing in the ag industry. Did they really think that was happening ? That’s some mismanagement if that’s the case.
 

·
Registered
Joined
·
448 Posts
"couldn't make payroll" on 135 employees, only 2mil in net assets (assuming inventory is sold for full value) on a 66 million company; That is un-good. Vultures will end up picking the bones of this carcass.
 

·
Premium Member
Joined
·
5,248 Posts
Not good news at all.
I figured things would go south once the family was no longer in control. Guess I better stock on parts for my old Seedrites and rodweeders while a guy can. You guys with a newer drill, not good situation for resale if they can't survive.
Sad to see what used to be a Saskatchewan icon about to go away.
 

·
Registered
Joined
·
5,380 Posts
I see that their physical assets and inventory are 15 million short of their asset total. Where they self financing equipment sales, and have 15 million in receivables on sales? Or maybe they now have to show their self determined enterprise blue sky value on the books, and there’s no buyer for a distressed sale.

I hope they can get a purchase rescue.
 

·
Registered
Joined
·
4,182 Posts
I'm thinking the uptake on that new drill just hasn't been that great. Heard some rumor's of a few issue's with it to boot. It's not really a surprise, they haven't been wining the popularity contest and if a down turn in ag has been afoot you can bet your ass a new drill gets knocked to the bottom of the list.
 

·
Registered
Joined
·
4,018 Posts
Think new holland buys them ? Kind of a duplicate to what they have allready. Someone mentioned maybe agco ?

The producer article mentioned a major issue with the quantum’s in Australia, and something similar here.
 

·
Premium Member
Joined
·
8,230 Posts
Most unfortunate. I was thinking that I would look seriously at a Morris tank next time around, they have a very simple and accurate sectional control system. Hopefully someone picks up the pieces and runs with it.

But in all seriousness this won't be the last company to have this happen, one could easily substitute Bourgault or any number of companies that have rapidly expanded into a downturn in AG into that article. Wild times ahead folks...
 

·
Registered
Joined
·
378 Posts
Most unfortunate. I was thinking that I would look seriously at a Morris tank next time around, they have a very simple and accurate sectional control system. Hopefully someone picks up the pieces and runs with it.

But in all seriousness this won't be the last company to have this happen, one could easily substitute Bourgault or any number of companies that have rapidly expanded into a downturn in AG into that article. Wild times ahead folks...
I was just thinking the same thing this afternoon, Bourgault could be close too and certainly the seed twins. Its funny how we were told only a couple months ago all was well..... My bet is AGCO picks up the ruins or Kubota. AGCO wouldn't even have to pick up that many new dealers in Western Canada, plus they could easily sell the hay tools through their dealers as well.
 

·
Registered
Joined
·
199 Posts
This doesn’t surprise me, companies are just adding %10-20 every year trying to stretch every last penny of what the market will bear. Then guess what things go south, and now the market can’t handle it, so instead of lowering prices they still try for a few more percent than last year. They are willing to go bankrupt rather than lower their prices. I don’t feel bad for them but I do feel bad for us loosing competition.
It will be hard to spend much money on a drill this year. What companies will be around next year? $600000 drill and no company next year for parts etc. If a guy picks wrong you might have a $600000 worthless drill.
 

·
Registered
Joined
·
4,474 Posts
A perfect storm is brewing the world over except russia and Asia for ag business.

The key is debt level, regulation, market acceptance and weather variations.

Ant...
 

·
Registered
Joined
·
1,119 Posts
Discussion Starter #15
I came across this in the court filed affidavits View attachment 158107
Some of this has been done already.
Just how many management people work in the fancy Head office in Saskatoon?
They are saying they have 135 employees?
I thought there was 9 employees left in production to build parts at the main plant on york road and maybe another 10 vehicles up front.
So possibly 20 total in Yorkton?
 

·
Registered
Joined
·
976 Posts
Bourgault laid off a number of employees a year or so ago, now this. It’s only a matter of time before all the manufacturers are in trouble. Keep building these soon to be million dollar drills and see how many they sell.
Hate to say it but I like what’s happening. The only way there is going to be a correction is when is farmers put our size 12s down and say no more to this ridiculous high priced deprecating iron.
Its time more than just the farmers start suffering.
 

·
Premium Member
Joined
·
5,447 Posts
The old rule of thumb when fabricating or welding up equipment was that manufactures and fabricators would often sell or price it for 4 times the weight. If something took a 1000 lb of steel to make it would sell for around $40000. A lot of this stuff like drills have gone to a multiple of around 10x or more. These manufactures are going to have to both practice cost and price reduction to make things affordable. Four to five years ago guys were talking about million dollar seeding outfits. We have quickly blown past that and who knows what it is at now.
 

·
Premium Member
Joined
·
4,051 Posts
There hasn’t been to many threads on here about buying new iron lately what does that tell you?
 

·
Registered
Joined
·
1,119 Posts
Discussion Starter #19
10.8 million owed receivables from equipment sent to Australia?
Even if that amount all recovered it still would only bring the non secured suppliers current.
Story was here in Yorkton that Australia not paying until Morris fixes the problems with the new drill.
 

·
Registered
Joined
·
657 Posts
Bourgault laid off a number of employees a year or so ago, now this. It’s only a matter of time before all the manufacturers are in trouble. Keep building these soon to be million dollar drills and see how many they sell.
Hate to say it but I like what’s happening. The only way there is going to be a correction is when is farmers put our size 12s down and say no more to this ridiculous high priced deprecating iron.
Its time more than just the farmers start suffering.
A lot of land will sit idle before farmers stop buying iron. Most guys are stuck between a rock and hard place. These bigger farms are leaseing every piece of iron and there imported work force has zero skill set to grease or fix a thing. There’s a lot of 2-3yr old equipment on lots that’s never seen grease or service without dealer doing it. A guy should probably be buying Ritchie shares as a hedge.
 
1 - 20 of 111 Posts
Top