Collings Brothers of Abbotsley Limited

Background

Collings Brothers of Abbotsley Ltd, incorporated in December 1955, was an agricultural machinery dealership operating from a freehold property near St Neots, Cambridgeshire . The company sold agricultural tractors, machinery, spares and parts stock and retail stock, including lawn mowers and chainsaws. The main franchise brands were Deutz Fahr, Merlo and Kuhn.  

Due to various economic and other factors, that are placing additional pressure on the agricultural sector, the Company was unable to return to profitable trading and Nicholas O’Reilly of MHA was appointed as Liquidator on 29th April 2024, to oversee the solvent liquidation of the Company.

Plant and Machinery

Our Role

Hilco were instructed, initially by the Company and subsequently by the Liquidator, to act as agent on both the considerable volume of machinery and business assets, as well as the freehold property interest.   

We undertook a thorough site inspection, completing a full schedule of assets which we used as the basis for our formal valuation: whilst on site, Hilco also recorded details of assets which were third party, some assets were on hire agreements whilst others were owned by customers of the Company. 

Following the appointment of the Liquidator, Hilco returned to site to prepare the assets for sale via online auction, employing multiple security measures to keep the premises and the assets safe, including security guards, a new alarm system and concrete blocks on all exits.

An extensive marketing campaign was undertaken to maximise interest in the online auction, with adverts being included in numerous agricultural magazines and websites, auction news, social media, and the local press. Additionally, Hilco sent a series of e-blasts and printed flyers to those without an email address, advertising the auction to multiple Deutz Fahr, Merlo and Kuhn dealers across the country, as well as the Company’s extensive customer database. Hilco ran all aspects of the auction, from lotting and setting reserve prices, whilst overseeing all marketing and running two viewing days on site.  

Result

The online auction was a huge success, with c.600 bidders registered across the two days, with a combined total of c.550 lots. Principal assets included in the sale were five Deutz Fahr Tractors, a Deutz Fahr Combine Harvester, four Merlo telehandlers and a large assortment of Kuhn agricultural machinery. In addition to this, large quantities of retail and parts stock.

Hilco were responsible for organising and collecting payments, as well as arranging collection and the safe removal of all assets sold from site. During the collection of the assets, the Hilco team on site cleared any remaining rubbish/assets from the site, coordinating the collection of the IT equipment from site and organising the collection of the hired vehicles from site. 

Freehold Property

The freehold property comprises two elements, held on separate titles: 

• The premises utilised by the Collings Brothers business,  comprising c. 25,000 sq ft of workshops, retail, office and storage accommodation on a substantial site of c. 3.3 acres
• An adjacent bungalow in poor condition with planning consent for a new build chalet style 4 bed house with detached garage totalling 3,390 sq ft

Our Role

The Hilco Global Real Estate Advisory team marketed the two sites individually, clearly highlighting the availability of the adjacent site. A comprehensive marketing campaign was undertaken via traditional print as well as a range of online initiatives, including social media channels, in order to maximise exposure to the market.  We also assisted the liquidators in arranging and overseeing security, clearing the property of waste following the auction, and undertaking repairs to the roof.

Result

A deadline for offers for both elements of the freehold property was set, and a number of competitive offers were received. Following further negotiations, both titles are close to transacting at an attractive level.