Dawn Group Limited was a multifaceted manufacturing firm operating out of large Christchurch industrial premises with a smaller engineering satellite site in Blenheim. Their head office in Christchurch consisted of a large joinery operation along side a specialist HVAC engineering division. Their Blenheim location was purely engineering working mainly with stainless pipework fabrication and offsite installations. In May 2018, the firm was place in liquidation. Skylarc was contracted to prepare a sales plan to maximise financial return on the assets located at both sites.
The challenge
Two auctions at two sites. Due to time constraints, Skylarc managed the sale of the Blenheim sites’ assets first. The site was a small industrial warehouse which stocked pipe cutting and welding equipment and a wide range of pipe fittings and accessories. Key machines included late model Georg Fischer pipe cutters, Weco caddy TIG welders, power pipe pressing tools and a wide range of Milwaukee power tools, Also for sale was a houselot of furniture from the company’s rental property. Meanwhile, the Christchurch site was divided into an extensive joinery operation and a specialist HVAC manufacturer and installer. Key machines included a Thermwood SC40 CNC router, Artech edgebander, SCM and Orzta dimension saws, Viet wide format sander, a wide range of spindle moulders, along with a similar range of pipe cutting machinery, power tools and hand tools as found in the Blenheim site.
The process
A sales plan was agreed for both sites in consultation with the liquidators. This set out a timeframe for the sale and removal of all plant and equipment. Trade Me event auctions were chosen for each location to obtain the largest possible buyer audience.
Skylarc prepared the online auctions to maximise recoveries, photographing, describing and testing each item The household furniture was photographed in the property before removal to enhance the quality of the listings. Each listing provided potential buyers with detailed information resulting in a high level of bidder confidence. Video footage of all high value machinery including CNC equipment running programs was included to maximise buyer confidence and financial return as a result.
Where possible, smaller, easily freighted items, were assigned a delivery cost which opened up the auction to a nationwide audience. The premises was also prepared for viewing.
Marketing
A comprehensive marketing plan was developed in consultation with the liquidators.
This included advertising in local newspapers, industry targeted emails and telephone calls and a Facebook marketing campaign.
The outcome
The Blenheim auction ran for eight days and consisted of 445 lots. Total turnover exceeded expectations, with all lots selling at auction. As planned, the site was cleared over the following week and returned to the landlord. The Christchurch auction also ran for eight days and consisted of 887 lots.
Skylarc coordinated every aspect including the removal of all assets from the company’s premises, collecting payment from purchasers, deducting costs and commissions from the sale proceeds, and ensuring that the premises were left clean and tidy.
