SESS
Gold Member
Brentwood Power Equipment said:
Did the email come directly from Tarboro? I haven't received anything but keep checking the emails. Maybe tomorrow will be a good friday!!
FarmTrac Troubles
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Did the email come directly from Tarboro? I haven't received anything but keep checking the emails. Maybe tomorrow will be a good friday!!
country69
Member
Published March 24, 2008 10:49 am -
Farmtrac puts admin staff back to work
Tarboro company owes more than $14 million
BOB BENEDETTI
Staff reporter
An ailing Tarboro-based farm implement company opened its doors last week for business just enough for a few workers to get a foot inside.
Farmtrac North America has a barebones management and administrative staff back on duty at its headquarters building on 111 Fairview St., according to Jim Marrow, the Tarboro attorney who assumed court-ordered duty as Receiver of Farmtrac on Feb. 27.
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped.
Farmtrac owes more than $14 million in loans and legal fees to secured creditor Textron Financial Corp. of Atlanta and unsecured creditor LS Cable Company Ltd., of Seoul, South Korea.
Marrow has appointed one manager and about 12-13 administrative helpers on the payroll.
Led by Doug Gurkins of Washington, N.C., a property and land evaluator, the group's job is to handle a backlog of parts and limited warranty issues that have been paralyzing the more than 300 Farmtrac dealers nationwide unable to support customers and unable to sell enough goods to keep doors open.
"We needed to create billing and processing mechanisms" to serve dealerships, Marrow said.
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.
Marrow called the effort of up to 20 workers each day "a real show of loyalty" albeit a disheveled one likening it to "a Boy Scout troop with nobody in charge" after company management disappeared and "created a void" in leadership.
For dealers across the country, that eight-week gap has eroded confidence so badly, it is questionable if dealers would be willing to do anything beyond offloading Farmtrac goods.
Marrow believes that securing a comprehensive maintenance program with a third-party could be the lynchpin to retain present Farmtrac dealers. Discussions with undisclosed service vendors are underway, but no agreement has been reached.
According to Vice-Chairman and Co-owner Ted Wade of Montana Tractors, who shares Middle Eastern-based Escorts, Ltd. as a parent company, the Springdale, Ark., tractor firm has an interest in "helping" financially ailing Farmtrac by "representing its warranty, parts and service" segments.
During a recent phone conversation with Wade, the Montana Tractor leader did not confirm nor deny direct discussions with Farmtrac executives. Both groups had representatives in New Delhi, India during early March.
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."
The Daily Southerner, Tarboro, NC - Farmtrac puts admin staff back to work
Farmtrac puts admin staff back to work
Tarboro company owes more than $14 million
BOB BENEDETTI
Staff reporter
An ailing Tarboro-based farm implement company opened its doors last week for business just enough for a few workers to get a foot inside.
Farmtrac North America has a barebones management and administrative staff back on duty at its headquarters building on 111 Fairview St., according to Jim Marrow, the Tarboro attorney who assumed court-ordered duty as Receiver of Farmtrac on Feb. 27.
On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped.
Farmtrac owes more than $14 million in loans and legal fees to secured creditor Textron Financial Corp. of Atlanta and unsecured creditor LS Cable Company Ltd., of Seoul, South Korea.
Marrow has appointed one manager and about 12-13 administrative helpers on the payroll.
Led by Doug Gurkins of Washington, N.C., a property and land evaluator, the group's job is to handle a backlog of parts and limited warranty issues that have been paralyzing the more than 300 Farmtrac dealers nationwide unable to support customers and unable to sell enough goods to keep doors open.
"We needed to create billing and processing mechanisms" to serve dealerships, Marrow said.
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.
Marrow called the effort of up to 20 workers each day "a real show of loyalty" albeit a disheveled one likening it to "a Boy Scout troop with nobody in charge" after company management disappeared and "created a void" in leadership.
For dealers across the country, that eight-week gap has eroded confidence so badly, it is questionable if dealers would be willing to do anything beyond offloading Farmtrac goods.
Marrow believes that securing a comprehensive maintenance program with a third-party could be the lynchpin to retain present Farmtrac dealers. Discussions with undisclosed service vendors are underway, but no agreement has been reached.
According to Vice-Chairman and Co-owner Ted Wade of Montana Tractors, who shares Middle Eastern-based Escorts, Ltd. as a parent company, the Springdale, Ark., tractor firm has an interest in "helping" financially ailing Farmtrac by "representing its warranty, parts and service" segments.
During a recent phone conversation with Wade, the Montana Tractor leader did not confirm nor deny direct discussions with Farmtrac executives. Both groups had representatives in New Delhi, India during early March.
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."
The Daily Southerner, Tarboro, NC - Farmtrac puts admin staff back to work
Tim C,
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks
That is a mis-print, Escorts and Montana have no affiliation...unless something has happened since this whole deal went down...but we would have heard about this from somewhere else besides a newspaper in NC...They probably meant LS Cable.
"Tim C,
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks"
That is why you should trust 25% of what you read in the newspapers and only 5% of what you read on the internet.
One big thing that have been wrong in The Dailysoutherner. LS Cable pushed Farmtrac into receivership, not Textron as reported by them. If you look at the letter everyone just received, you will see it is LS vs Farmtrac. Textron is not mentioned. The rest of the reporting is just as suspect. It is limiting that they are the only source of information for the general public for two reasons. First, they are too close to the story. Second, there is not another news source to balance what they report.
The only thing Montana and Farmtrac have in common is they have contracts to buy LS tractors. Same as McCormick. They share nothing else.
Tim
In the Daily Southerner article referenced by country69, it said something like "Escorts shared by Montana and FARMTRAC as parent". Have you heard that before --what does it mean? Has Montana finally done an end run around FARMTRAC? Hve you received the letter mentioned in the other FARMTRAC thread? Apparently it went to dealers and consumers alike. I have not received it. Thanks"
That is why you should trust 25% of what you read in the newspapers and only 5% of what you read on the internet.
One big thing that have been wrong in The Dailysoutherner. LS Cable pushed Farmtrac into receivership, not Textron as reported by them. If you look at the letter everyone just received, you will see it is LS vs Farmtrac. Textron is not mentioned. The rest of the reporting is just as suspect. It is limiting that they are the only source of information for the general public for two reasons. First, they are too close to the story. Second, there is not another news source to balance what they report.
The only thing Montana and Farmtrac have in common is they have contracts to buy LS tractors. Same as McCormick. They share nothing else.
Tim
Tim,
I did not receive the LS letter or at least haven't so far. I did receive the Gurkins letter however. I don't know if they expect to sell much on C.O.D. Most of us will use them as last resort rather than pay C.O.D. charges which will only make things worse.
Thanks for clarifing the Parent thing in the 'Southerner. I didn't think it was fact but if you know R.M. who used to be with Montana you think nothing is beyond him and maybe the new guy at Montana also.
Thanks again,
By the way there is another thread that speaks of a Textron anouncement on Apr 1. I hope it isn't just for April Fools. I haven't had any problems with Textron so I hope it is something beneficial.
I did not receive the LS letter or at least haven't so far. I did receive the Gurkins letter however. I don't know if they expect to sell much on C.O.D. Most of us will use them as last resort rather than pay C.O.D. charges which will only make things worse.
Thanks for clarifing the Parent thing in the 'Southerner. I didn't think it was fact but if you know R.M. who used to be with Montana you think nothing is beyond him and maybe the new guy at Montana also.
Thanks again,
By the way there is another thread that speaks of a Textron anouncement on Apr 1. I hope it isn't just for April Fools. I haven't had any problems with Textron so I hope it is something beneficial.
if you go to the dailey southerner website and click on old archives,you will find a story by Sue Stuart,written probably one and a half or two years ago.this story outlines the actual ownership of Farmtrac of north america,which can be quite cunfusing .it appears that Escorts of india owns 49% of Farmtrac and Beaver Creek holding co. owns 51%.now it gets confusing,Escorts also holds 51% of Beaver Creek and Universal Tractor of romania holds the other 49%. what this boils down to is that Escorts actually owns 75% of Farmtrac and universal tractor owns the other 25%.in another story in triangle business journal dated feb. 24,2006, it was reported that montana was at that time negotiating with universal tractors to purchase it's 25% of Farmtrac stock.I do not know if this was accomplished or not. the article also stated that Montana was negotiating to buy a universal tractor plant in romania. makes one wonder whats really going on.
SESS
Gold Member
In late to mid 2007, Montana had started negotiations with Farmtrac again, but it once again fell through. Who knows at this point, if it has started up again.