Following the announcement that Dunstall Holdings Ltd, the parent company of Rea Valley Tractors and Teme Valley Tractors, was calling in administrators to find a path forward after difficult market conditions. It has been confirmed that Rea Valley Tractors will close with immediate effect.
According to a statement from administrators PwC, as a result of difficult trading conditions over a prolonged period, and inflationary cost pressures, Dunstall Holdings had tried to secure a long-term future through the sale of all or part of the businesses.
However, with no viable options, the businesses will be wound down over the following weeks. 149 employees have been made redundant with immediate effect, while 20 are being retained across the seven sites to support with closing down the business.
PwC are working closely with the Redundancy Payments Service (RPS) to ensure those affected receive their statutory entitlements 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.”
Affected franchises
Rea Valley was a significant dealer for several major machinery brands, and the speculation surrounding the business in recent weeks has led to multiple dealer changes in the area.
JCB swiftly reorganised its dealer network in the affected areas:
- Sharmans Agriculture Ltd will extend its territory to cover Derbyshire and Staffordshire up to the M6. According to the company, the dealer will also establish a new depot to service customers in the area.
- Chandlers RFM will expand its sales and service area to include Shropshire and areas of Staffordshire west of the M6, operating initially from its Bridgnorth depot with plans to open new premises at Market Drayton.
- John Bownes will now cover Cheshire, operating from Winsford
- In the short term, Emyr Evans will provide parts and technical service support in north and mid Powys, and the north of Ceredigion, with a permanent dealer appointment to be made in due course
Kuhn Farm Machinery also announced changes to its network, following both Rea Valley’s closure and changes at Malpas Tractors. With immediate effect, RVW Pugh has taken over sales and services.
On its social media feeds, Grimme UK announced that SOS Agricultural will handle service and parts support for Lancashire, Cheshire and Staffordshire.
While New Holland has not announced any dealer changes at the time of publication, it did release a statement on its website reassuring customers that they can access warranty, servicing and purchasing through any local New Holland dealer.