One of Shropshire’s best-known agricultural machinery firms has collapsed into administration, with almost 150 jobs lost at Rea Valley Tractors.
The firm, which sells, services and repairs agricultural machinery, has seven dealerships including sites in Welshpool, Knighton and Shrewsbury.
It had announced its intention to appoint administrators in August while efforts were made to sell the business, but attempts to find a buyer for both Rea Valley Tractors and parent company Dunstall Holdings have failed.
Administrators today (11 September) confirmed that 149 of the company’s 169 staff have been made redundant with immediate effect.
Around 20 employees will remain in place across the seven sites to assist with winding down operations in the coming weeks.
A statement from the administrators at PwC confirmed that Tim Higgins, Edward Williams and Jane Steer have been appointed as joint administrators of both Rea Valley Tractors Ltd and Dunstall Holdings Ltd.
The administrators said: “As a result of difficult trading conditions over a prolonged period and inflationary cost pressure, the companies had been pursuing opportunities to secure a long-term future through a sale of all or part of the businesses.
“Despite a comprehensive marketing process, no viable offers were received for the group as a whole. Consequently, the directors have been left with no alternative but to place the companies into administration.”
The administrators added that they were working closely with the Redundancy Payments Service to ensure staff receive payments “as soon as possible”.
Tim Higgins, joint administrator, said: “Rea Valley Tractors is one of the most recognisable names in the local agricultural industry and it’s with great sadness that it has entered administration today along with Dunstall Holdings.
“Regrettably, 149 employees have been made redundant – we know how unsettling this will be for the people affected, as well as the group’s customers at this important time of year, and we will be providing all parties with the necessary support.”
