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Apparent Farmtrac Liquidation
- Thread starter dgl24087
- Start date
YIKES, if my math is correct, they are dumping 902 tractors and an unknown number of loaders. For a small marketer of tractors, that may well be a whole year of inventory, or pretty close to a whole year. I wonder if the 'credit crisis' and the rash of foreclosures is also crashing the small tractor market?
Does anyone know if Farmtrac is going out of business?
Does anyone know if Farmtrac is going out of business?
The Daily Southerner, Tarboro, NC - Farmtrac goes into receivership
Farmtrac goes into receivership
BOB BENEDETTI
Associated Press
Since Farmtrac North America closed its doors on Jan. 18, workers of the Tarboro-based firm and dealers across the nation who sell its products have hoped to learn more about the company's status.
The farming implement manufacturer at 111 Fairview St., as recent as Feb. 5 had continued to keep approximately 180 Farmtrac workers under temporary layoff and still in limbo.
Farmtrac Chief Financial Officer Alton Cobb and Marketing Director Shenu Agarwal have failed to respond to calls and e-mail within a three-week period inquiring on the company's status. Farmtrac dealerships across also have reported the company's failure to respond.
According to a complaint filed Feb. 12 in Edgecombe County Superior Court, Textron Financial Corp. is seeking "not less than $13,309,056 plus interest plus attorney's fees of $1,996,358 and "additional contingent obligations"
According to a Claim and Deliver affidavit dated Feb. 12, the actual value of Farmtrac property is "approximately $12 million."
The complaint form also states that N. Hunter Wyche of Raleigh, a legal representative for Farmtrac, agreed to a request for Claim and Delivery hearing by Textron Financial. A claim and delivery is a legal action to recover personal property which is in the possession of another party.
Textron Financial Corp. local counsel David M. Warren said Wednesday that a Claim and Delivery hearing has not yet taken place. It is one of many options available to Textron and Farmtrac.
Edgecombe County Superior Court Trial Coordinator Bill Nichols said Wednesday that during a hearing Tuesday, attorney Jim Morrow of Tarboro was appointed as receiver for Textron Financial.
A receiver is appointed by a bankruptcy court or creditor to run a company. The responsibility of the receiver is to recoup as much of the unpaid loans as possible. Being in receivership is not an enviable situation for a company. Forbes Media explains that "Often receivers find that the best way to pay back loans is to liquidate the company's assets, which would effectively put it out of business."
Farmtrac originally signed into the repurchase agreement with Textron Financial on Oct. 6, 2006.
When asked about severance packages or buyout plans on February 5, Sales Manager Sushil Kaul conceded that "the company does not have enough funds" to consider those options.
So what are workers to do?
They can choose between riding it out or pursuing other employment.
The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.
Farmtrac sales and service franchises across the nation state they have not been contacted by phone or fax after multiple attempts to reach Headquarters. They have a costly stock of tractors that customers are unwilling to purchase new tractors without manufacturer warrantees and support. Others dealers report being unable to locate parts to keep their customers' tractors operational.
BOB BENEDETTI
Associated Press
Since Farmtrac North America closed its doors on Jan. 18, workers of the Tarboro-based firm and dealers across the nation who sell its products have hoped to learn more about the company's status.
The farming implement manufacturer at 111 Fairview St., as recent as Feb. 5 had continued to keep approximately 180 Farmtrac workers under temporary layoff and still in limbo.
Farmtrac Chief Financial Officer Alton Cobb and Marketing Director Shenu Agarwal have failed to respond to calls and e-mail within a three-week period inquiring on the company's status. Farmtrac dealerships across also have reported the company's failure to respond.
According to a complaint filed Feb. 12 in Edgecombe County Superior Court, Textron Financial Corp. is seeking "not less than $13,309,056 plus interest plus attorney's fees of $1,996,358 and "additional contingent obligations"
According to a Claim and Deliver affidavit dated Feb. 12, the actual value of Farmtrac property is "approximately $12 million."
The complaint form also states that N. Hunter Wyche of Raleigh, a legal representative for Farmtrac, agreed to a request for Claim and Delivery hearing by Textron Financial. A claim and delivery is a legal action to recover personal property which is in the possession of another party.
Textron Financial Corp. local counsel David M. Warren said Wednesday that a Claim and Delivery hearing has not yet taken place. It is one of many options available to Textron and Farmtrac.
Edgecombe County Superior Court Trial Coordinator Bill Nichols said Wednesday that during a hearing Tuesday, attorney Jim Morrow of Tarboro was appointed as receiver for Textron Financial.
A receiver is appointed by a bankruptcy court or creditor to run a company. The responsibility of the receiver is to recoup as much of the unpaid loans as possible. Being in receivership is not an enviable situation for a company. Forbes Media explains that "Often receivers find that the best way to pay back loans is to liquidate the company's assets, which would effectively put it out of business."
Farmtrac originally signed into the repurchase agreement with Textron Financial on Oct. 6, 2006.
When asked about severance packages or buyout plans on February 5, Sales Manager Sushil Kaul conceded that "the company does not have enough funds" to consider those options.
So what are workers to do?
They can choose between riding it out or pursuing other employment.
The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.
Farmtrac sales and service franchises across the nation state they have not been contacted by phone or fax after multiple attempts to reach Headquarters. They have a costly stock of tractors that customers are unwilling to purchase new tractors without manufacturer warrantees and support. Others dealers report being unable to locate parts to keep their customers' tractors operational.
Makes ya wonder? A local company ( http://www.kingequipment.com/ ) web ad list the FT675 @ $18,900.00, and this ad lists for $16,900.00. (Just for comparison)
I wonder if this will affect MONTANA tractors?
MONTANA doesn't make their own tractors, they simply market tractors that are made by others. At least a few of the models sold by Montana are repainted Farmtrac units. I was under the impression that Farmtrac actually made some of the tractors they sold, while others were contract made for them. I'm not sure how accurate that is, but that is the impression I had been given. If Farmtrac actually made some of the tractors, and if those are the same models that MONTANA markets, then this could also be very bad news for MONTANA.
But then again, I think MONTANA has been struggling to build a dealer base. Every dealer in my area that I knew of dropped the line. There have been reports by others here that MONTANA dealers also dropped that line. So I'm not too current on my news about that company, nor do I really care, since I wasn't at all impressed with them (worst ergonomic layout of any brand I've ever tried!) and since they aren't available near me anyway.
MONTANA doesn't make their own tractors, they simply market tractors that are made by others. At least a few of the models sold by Montana are repainted Farmtrac units. I was under the impression that Farmtrac actually made some of the tractors they sold, while others were contract made for them. I'm not sure how accurate that is, but that is the impression I had been given. If Farmtrac actually made some of the tractors, and if those are the same models that MONTANA markets, then this could also be very bad news for MONTANA.
But then again, I think MONTANA has been struggling to build a dealer base. Every dealer in my area that I knew of dropped the line. There have been reports by others here that MONTANA dealers also dropped that line. So I'm not too current on my news about that company, nor do I really care, since I wasn't at all impressed with them (worst ergonomic layout of any brand I've ever tried!) and since they aren't available near me anyway.
Escorts Agri manufactured the Ford looking tractors, SAME mfgs. the 700 series, LS mfgs. the compacts for Farmtrac, Montana and McCormick. Escorts is majority owner of Farmtrac. Dealers have been kept in the dark about the situation and the future of the company. Textron foreclosed and the rest is history. Montana has reached an agreement with LS to take over parts and warranty support for the LS Farmtracs. A lot of Farmtrac dealers are going to lose big when all is over. The Escorts tractors will be orphans, no parts or warranty support. Deutz Fahr will provide parts but no warranty support for the SAME tractors. *** Update *** Lewpack has changed the web announcement to state that these tractors are for sale for export only.
Last edited:
It varied by model.
Yup, and I believe all of the implements and most of the loaders for both Farmtrac and Montana are made here in the US by OEM contractors but are simply painted and branded as Farmtrac or Montana.
From the Daily Southerner, Tarboro, NC, April 2, 2008:
TRACTORS FOR SALE
Online vendor selling Farmtrac units
For sale: 902 Farmtrac tractors at a great price. That's one of the options offered to the public by a liquidation Web site late Monday.
The online clearance Web site comes nearly three months after financially embattled tractor manufacturer Farmtrac North America (FNA) closed its doors to employees to reorganize. It is also more than 180 days behind on its debt of more than $14 million to Atlanta, Ga.-based Textron Financial.
Attorney Jim Marrow of Tarboro, who assumed duty Feb. 27 as the Edgecombe County court-appointed receiver, was asked about the online offering.
Marrow said that rapidly selling the tractors at "fire sale prices" is "an unenviable and last option," and that efforts are in place to shape up the company's books, inventory and hardware enough to attract a buyer.
"That is ultimately is the best solution to maximize value," he said.
The function of a receiver is to ensure payment of debt to creditors. In the case of six-decade old Farmtrac, it is also to repair the company's reputation and prevent it from perishing.
"In essence, I am now the owner of Farmtrac," Marrow explained. "I'm aware many people are hurt in this ... and that we've got to act quickly."
Marrow claimed he had no knowledge about a liquidation site operated by LewPack International of metro Atlanta prior to faxes and e-mails from Farmtrac retailers across the country with Web site information, a page hosting 19 different models of Farmtrac tractors.
There are approximately 700 partly-assembled and 250 completed tractors on Farmtrac locations in Tarboro.
In further conversation, the receiver attributed the online sale attempt to a "miscommunication" between two undisclosed parties. "They were contacted (Tuesday) and the Web page is no longer in service," Marrow said.
LewPack's Farmtrac sales page, lewpackinternational.com/tractors.html continued to be in full operation at the time today's newspaper had gone to press.
In addition, a Middle Eastern competitor Web site, Vivastreet.co.in, is also offering the multitude of Farmtrac products for sale. The listing was posted on Sunday by co-owner of LewPack International, Bobby Pack.
In conversations with Pack, he offered tractors at rates thousands of dollars less than dealer cost. "It's a close out for a U.S. distributor," Pack said. "We're liquidating all of it."
Since late February, Marrow has appointed a barebones management and administrative staff back on duty at its headquarters building on 111 Fairview St. to wade though a sea of backdated paperwork and "get a good picture of what's here."
Disheveled bookkeeping and a lack of hardware inventory are issues that Doug Gurkins of Washington, N.C., a veteran property and land evaluator, has reported to Marrow.
Transactions that are four or five years old, partly cannibalized tractors used for parts and dislocated tractors are a handful of examples that represent the mess Marrow inherited.
"One tractor was taken to a farm show in Louisville, (Ky.). Instead of bringing it back afterward, it was left at the nearby retailer," Morrow said. "At $30,000 a pop, that can add up pretty quick."
The tractors are spread across nearly 300 Farmtrac dealerships across the U.S. and Canada, plus three different properties (production and storage) in Tarboro.
The lack of a tractor warranty program is a large – and essential – obstacle that must be conquered if the firm has any chance to be successful. In some states, law requires a warranty with "new" tractors. Numerous dealerships have reported that customers are unwilling to pay full price for a tractor without protection against breakage.
"It could be the difference between failure and success" of retaining dealers and customers, Marrow said.
Negotiations are under way and Marrow as "two or three" potential third-party tractor warranty and maintenance companies, one which could be approved "within seven to 10 days." Marrow also stressed that quick actions are also critical. "We will lose a lot of brand value if we let it linger," Marrow said "and the selling season is ending rapidly."
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped. The workers are still in limbo and under temporary layoff.
The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.
Although Farmtrac employees voluntarily gave five to six hours daily during the plant closing in an effort to continue basic parts and phone support, numbers and support fizzled.
TRACTORS FOR SALE
Online vendor selling Farmtrac units
For sale: 902 Farmtrac tractors at a great price. That's one of the options offered to the public by a liquidation Web site late Monday.
The online clearance Web site comes nearly three months after financially embattled tractor manufacturer Farmtrac North America (FNA) closed its doors to employees to reorganize. It is also more than 180 days behind on its debt of more than $14 million to Atlanta, Ga.-based Textron Financial.
Attorney Jim Marrow of Tarboro, who assumed duty Feb. 27 as the Edgecombe County court-appointed receiver, was asked about the online offering.
Marrow said that rapidly selling the tractors at "fire sale prices" is "an unenviable and last option," and that efforts are in place to shape up the company's books, inventory and hardware enough to attract a buyer.
"That is ultimately is the best solution to maximize value," he said.
The function of a receiver is to ensure payment of debt to creditors. In the case of six-decade old Farmtrac, it is also to repair the company's reputation and prevent it from perishing.
"In essence, I am now the owner of Farmtrac," Marrow explained. "I'm aware many people are hurt in this ... and that we've got to act quickly."
Marrow claimed he had no knowledge about a liquidation site operated by LewPack International of metro Atlanta prior to faxes and e-mails from Farmtrac retailers across the country with Web site information, a page hosting 19 different models of Farmtrac tractors.
There are approximately 700 partly-assembled and 250 completed tractors on Farmtrac locations in Tarboro.
In further conversation, the receiver attributed the online sale attempt to a "miscommunication" between two undisclosed parties. "They were contacted (Tuesday) and the Web page is no longer in service," Marrow said.
LewPack's Farmtrac sales page, lewpackinternational.com/tractors.html continued to be in full operation at the time today's newspaper had gone to press.
In addition, a Middle Eastern competitor Web site, Vivastreet.co.in, is also offering the multitude of Farmtrac products for sale. The listing was posted on Sunday by co-owner of LewPack International, Bobby Pack.
In conversations with Pack, he offered tractors at rates thousands of dollars less than dealer cost. "It's a close out for a U.S. distributor," Pack said. "We're liquidating all of it."
Since late February, Marrow has appointed a barebones management and administrative staff back on duty at its headquarters building on 111 Fairview St. to wade though a sea of backdated paperwork and "get a good picture of what's here."
Disheveled bookkeeping and a lack of hardware inventory are issues that Doug Gurkins of Washington, N.C., a veteran property and land evaluator, has reported to Marrow.
Transactions that are four or five years old, partly cannibalized tractors used for parts and dislocated tractors are a handful of examples that represent the mess Marrow inherited.
"One tractor was taken to a farm show in Louisville, (Ky.). Instead of bringing it back afterward, it was left at the nearby retailer," Morrow said. "At $30,000 a pop, that can add up pretty quick."
The tractors are spread across nearly 300 Farmtrac dealerships across the U.S. and Canada, plus three different properties (production and storage) in Tarboro.
The lack of a tractor warranty program is a large – and essential – obstacle that must be conquered if the firm has any chance to be successful. In some states, law requires a warranty with "new" tractors. Numerous dealerships have reported that customers are unwilling to pay full price for a tractor without protection against breakage.
"It could be the difference between failure and success" of retaining dealers and customers, Marrow said.
Negotiations are under way and Marrow as "two or three" potential third-party tractor warranty and maintenance companies, one which could be approved "within seven to 10 days." Marrow also stressed that quick actions are also critical. "We will lose a lot of brand value if we let it linger," Marrow said "and the selling season is ending rapidly."
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped. The workers are still in limbo and under temporary layoff.
The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.
Although Farmtrac employees voluntarily gave five to six hours daily during the plant closing in an effort to continue basic parts and phone support, numbers and support fizzled.
Just grab a part from some other Chinese POS, and use a bigger hammer to get it to fit.
And/or Korean. It varies by model.
But all of them have really bad ergonomics! In fact I've never used/seen worse on any other brands.
TOMLESCOEQUIP
Just Plinkin Away the $$
The firms in India, Korea, etc that build the various models are doing fine. Their same machines continue to be available under different importers' trademarks. And this offers the opportunity for Farmtrac owners to get parts, but not warranty service, from these alternate importers.
It's the US importer that appears to have taken the money and run. I've seen it claimed that Farmtrac-USA received the money from the finance company to pay their Korean supplier for a shipment - but somehow the money is no longer available to pay the Koreans for that shipment. Who knows what the truth is.
It's the US importer that appears to have taken the money and run. I've seen it claimed that Farmtrac-USA received the money from the finance company to pay their Korean supplier for a shipment - but somehow the money is no longer available to pay the Koreans for that shipment. Who knows what the truth is.
True, the manufactures are not the culprits here.
However I wonder if the other importers are going to be faced with similar problems? The economy is far from strong, sales of small tractors probably will suffer because of the housing~credit crunch. Most of the companies who market these same tractors are much smaller and have much less name recognition, not to mention much weaker dealer networks than Farmtrac. Farmtrac has had a good reputation for a few decades while some other companies are mere babes in terms of corporate lifespan.
The Daily Southerner, Tarboro, NC - Farmtrac battling dealers in cyberspace
Farmtrac battling dealers in cyberspace
Bob Bendetti
Staff Writer
For 902 Farmtrac tractors, it appears to be a case of "abracadabra, disappear ... abracadabra, reappear."
At approximately 10:40 a.m. Eastern Time on Tuesday, that's what happened to a LewPack International Web site offering three Tarboro properties full of Farmtrac agricultural hardware – it vanished into cyberspace.
A bevy of custom built two-wheelers from Fort Worth, Texas-based IronHorse Motorcycles also disappeared from the LewPack site.
Farmtrac and IronHorse Motorcycles were financially troubled firms and both were bankrolled by Textron Financial of Alpharetta, Ga. Textron is the primary secured creditor to Farmtrac.
Both were present for one moment and gone the next.
The online clearance Web site comes three months after financially embattled Farmtrac North America (FNA) closed its doors to employees to reorganize. It is also more than 180 days behind on its debt of more than $14 million to Textron.
Attorney Jim Marrow of Tarboro assumed duty Feb. 27 as the Edgecombe County court-appointed receiver to ensure payment of debt to creditors. In essence, Marrow acts as the owner of Farmtrac. Part of his job is to repair the company's reputation and prevent it from perishing.
When asked about the offering through LewPack International, Marrow claimed having no prior knowledge but learned of it through faxes and e-mails from Farmtrac retailers across the country.
In further conversation Tuesday, the receiver attributed LewPack's online setup attempt to a "miscommunication" between two undisclosed parties that was resolved through a phone conversation.
"They were contacted and the Web page is no longer in service," Marrow said.
LewPack's Farmtrac sales page, lewpackinternational.com/tractors.html, was in full operation until shortly after The Daily Southerner had gone to press Wednesday.
LewPack International partner Bobby Pack, of Cummings, Ga., stated that he and Richard Lewis established the Web site "less than one month ago" for the express intent of "disposing of that property." The company was registered with the Georgia Secretary of State on Mar. 25.
On Thursday, a Web site for Country Boys Auction & Realty of Washington, N.C., listed an Apr. 25 auction of Farmtrac tractors and related hardware it claims is "primarily to dispose of a large amount of surplus ... approximately 25-30 tractors" that are for test, yard, experimental and prototype purposes."
According to the Country Boys Auction & Realty Web site, it is family-owned and operated by Mike and Doug Gurkins.
Doug Gurkins, hired by Marrow in late February to spearhead the project of sorting through years of bookkeeping and hardware inventory issues, leads a barebones administrative staff of 12 at the Farmtrac headquarters building on 111 Fairview Street to wade though a sea of backdated paperwork and "get a good picture of what's here."
More than a dozen photos on the Country Boys Auction site give a picture of numerous tractors, front end loaders, tractor motors, tires and a stream of miscellaneous parts are up for auction.
For dealers across the nation who are scraping for parts and often give them - and installation labor – away in an effort to satisfy customers inconvenienced by the Farmtrac headquarters January closing, the auction smacks especially hard.
"We sure could use those parts," a Farmtrac retailer based in the southeast U.S. said. "When we (dealers) do so much to keep our customers faith and then see something like this ... It just doesn't seem right."
There are nearly 300 Farmtrac dealerships across the U.S. and Canada, plus three different properties (production and storage) in Tarboro.
Marrow has contended that he'd do everything possible to restore the six-decade tractor firm to old form and said that rapidly selling the tractors at "fire sale prices" is "an unenviable and last option."
E-mails and phone calls from retailers have questioned the hiring of Gurkins, a veteran liquidator and personal property appraiser – and auction service co-owner – to assist Marrow in resuscitating Farmtrac.
One dealer said, "what a coincidence" while another cited the move as a "conflict of interest."
In past conversations, Marrow said he saw the acquisition of Gurkins as part of a plan to attract a buyer. "He (Gurkins) is a high energy guy ... who is experienced at property and real estate evaluation ... and knows how to maximize value."
There are approximately 700 partly-assembled and 250 completed tractors on Farmtrac locations in Tarboro.
For numerous reasons, the lack of a tractor warranty program is a large – and essential – obstacle that must be conquered if the firm has any chance to be successful.
"It could be the difference between failure and success" of retaining dealers and customers, Marrow said.
Negotiations are under way and Marrow as "two or three" potential third-party tractor warranty and maintenance companies, one which could be approved "within seven to 10 days."
Marrow also stressed that quick actions are also critical.
"I'm aware many people are hurt in this ... and that we've got to act quickly. We will lose a lot of brand value if we let it linger," Marrow said “and the selling season is ending rapidly”
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped. The workers are still in limbo and under temporary layoff.
The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.
Farmtrac battling dealers in cyberspace
Bob Bendetti
Staff Writer
For 902 Farmtrac tractors, it appears to be a case of "abracadabra, disappear ... abracadabra, reappear."
At approximately 10:40 a.m. Eastern Time on Tuesday, that's what happened to a LewPack International Web site offering three Tarboro properties full of Farmtrac agricultural hardware – it vanished into cyberspace.
A bevy of custom built two-wheelers from Fort Worth, Texas-based IronHorse Motorcycles also disappeared from the LewPack site.
Farmtrac and IronHorse Motorcycles were financially troubled firms and both were bankrolled by Textron Financial of Alpharetta, Ga. Textron is the primary secured creditor to Farmtrac.
Both were present for one moment and gone the next.
The online clearance Web site comes three months after financially embattled Farmtrac North America (FNA) closed its doors to employees to reorganize. It is also more than 180 days behind on its debt of more than $14 million to Textron.
Attorney Jim Marrow of Tarboro assumed duty Feb. 27 as the Edgecombe County court-appointed receiver to ensure payment of debt to creditors. In essence, Marrow acts as the owner of Farmtrac. Part of his job is to repair the company's reputation and prevent it from perishing.
When asked about the offering through LewPack International, Marrow claimed having no prior knowledge but learned of it through faxes and e-mails from Farmtrac retailers across the country.
In further conversation Tuesday, the receiver attributed LewPack's online setup attempt to a "miscommunication" between two undisclosed parties that was resolved through a phone conversation.
"They were contacted and the Web page is no longer in service," Marrow said.
LewPack's Farmtrac sales page, lewpackinternational.com/tractors.html, was in full operation until shortly after The Daily Southerner had gone to press Wednesday.
LewPack International partner Bobby Pack, of Cummings, Ga., stated that he and Richard Lewis established the Web site "less than one month ago" for the express intent of "disposing of that property." The company was registered with the Georgia Secretary of State on Mar. 25.
On Thursday, a Web site for Country Boys Auction & Realty of Washington, N.C., listed an Apr. 25 auction of Farmtrac tractors and related hardware it claims is "primarily to dispose of a large amount of surplus ... approximately 25-30 tractors" that are for test, yard, experimental and prototype purposes."
According to the Country Boys Auction & Realty Web site, it is family-owned and operated by Mike and Doug Gurkins.
Doug Gurkins, hired by Marrow in late February to spearhead the project of sorting through years of bookkeeping and hardware inventory issues, leads a barebones administrative staff of 12 at the Farmtrac headquarters building on 111 Fairview Street to wade though a sea of backdated paperwork and "get a good picture of what's here."
More than a dozen photos on the Country Boys Auction site give a picture of numerous tractors, front end loaders, tractor motors, tires and a stream of miscellaneous parts are up for auction.
For dealers across the nation who are scraping for parts and often give them - and installation labor – away in an effort to satisfy customers inconvenienced by the Farmtrac headquarters January closing, the auction smacks especially hard.
"We sure could use those parts," a Farmtrac retailer based in the southeast U.S. said. "When we (dealers) do so much to keep our customers faith and then see something like this ... It just doesn't seem right."
There are nearly 300 Farmtrac dealerships across the U.S. and Canada, plus three different properties (production and storage) in Tarboro.
Marrow has contended that he'd do everything possible to restore the six-decade tractor firm to old form and said that rapidly selling the tractors at "fire sale prices" is "an unenviable and last option."
E-mails and phone calls from retailers have questioned the hiring of Gurkins, a veteran liquidator and personal property appraiser – and auction service co-owner – to assist Marrow in resuscitating Farmtrac.
One dealer said, "what a coincidence" while another cited the move as a "conflict of interest."
In past conversations, Marrow said he saw the acquisition of Gurkins as part of a plan to attract a buyer. "He (Gurkins) is a high energy guy ... who is experienced at property and real estate evaluation ... and knows how to maximize value."
There are approximately 700 partly-assembled and 250 completed tractors on Farmtrac locations in Tarboro.
For numerous reasons, the lack of a tractor warranty program is a large – and essential – obstacle that must be conquered if the firm has any chance to be successful.
"It could be the difference between failure and success" of retaining dealers and customers, Marrow said.
Negotiations are under way and Marrow as "two or three" potential third-party tractor warranty and maintenance companies, one which could be approved "within seven to 10 days."
Marrow also stressed that quick actions are also critical.
"I'm aware many people are hurt in this ... and that we've got to act quickly. We will lose a lot of brand value if we let it linger," Marrow said “and the selling season is ending rapidly”
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped. The workers are still in limbo and under temporary layoff.
The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.