Challenge

As part of a strategic restructuring, a European food group made the decision to close a large 500,000 square foot facility in the UK. While the site had been valuable as a meat production plant, the site layout needed major renovations to meet efficiency improvement needs. After evaluating the cost to make renovations, the management team determined that the cash required to make the updates would make a greater difference in other parts of its business. The client chose to focus on a well-run disposition followed by immediate demolition and sought a partner to help manage the facility closure. The company required a rapid, phased process with a four-week timeframe to remove all equipment after the planned online auction. This would allow the company to commence demolition in a timely manner.

Solution

The client was committed to adhering to best practices for the UK plant and was careful to select a partner to carry out the process in an efficient manner. The company also desired to work with a vendor with expertise in its sector. After going through a strict vendor review process, the company selected Liquidity Services for its success selling surplus assets through its GoIndustry DoveBid marketplace. A clear challenge was the wide range of meat processing, portioning, cooling, packaging, and factory support equipment to be sold from the facility. The company had a 12-week window to close the plant through its phased process. Liquidity Services held a series of online auction sales to dispose of the available equipment, supervising more than 100 contractors in the process.

Results

Through the online auctions via the GoIndustry DoveBid marketplace and a private treaty process, all of the equipment — more than 1,200 lots — was sold. Liquidity Services actively tapped its global buyer base to ensure that each piece of equipment achieved maximum value in the secondary marketplace. The series of online auction sales attracted more than 107 registrants and 75 bids. Thanks to the combination of marketing and a well-managed sales process, total sales exceeded $1.7 million (€1,250,183*). The client was able to successfully close the plant with Liquidity Services' support through an organized process aligned with the company's goals to ensure a smooth, well-managed process.

The client was able to successfully close the plant with Liquidity Services' support through an organized process aligned with the company's goals to ensure a smooth, well-managed process.