The assets and plant of Rowecord Engineering have been sold off to a single buyer after an online auction, Construction News has learned.
- Stricken engineering firm’s assets sold off to a single buyer as scheduled auction cancelled.
- No employees or parts of the business undertaking sold to the buyer.
- Firm expected to enter liquidation after several months to come in administration.
An offer has been received and accepted by auctioneers Goindustry for more than 1,000 items of machinery and transport equipment, including more than 80 vans and cars, 10 tractors and lorries, and 50 flatbed trucks.
An online auction of more than 1,000 lots of large-capacity structural steel fabrication machinery and equipment was closed early after the deal was struck with the party for all the items.
The auction was due to take place between 2 July and 9 July, but was closed as of yesterday.
Construction News understands that no parts of the business undertaking have been sold and that no employees will be transferring to the asset buyer.
The intentions and identity of the purchaser are not yet know.
The administration team and Goindustry could not give the name of the buyer and declined to comment further.
Rowecord itself remains in administration and is expected to remain as such for several months before entering liquidation.
Rowecord entered administration in May on the back of cashflow problems, a weakened order book and contract disputes.
The £68m-turnover Newport-based firm had worked on such major projects as the Aquatics Centre for the London 2012 Olympics, 107 Cheapside in London, the Paddington Station Crossrail redevelopment and Cardiff City FC’s stadium.
A total of 424 employees were facing redundancy while administrators Grant Thornton sought to sell off the firm, with 83 staff remaining to see out ongoing work.
A deadline had been set for offers of 1 July 2013.
Administrator Alistair Wardell told BBC Wales the firm could owe up to £50m to creditors – twice as much as previously thought.
Creditors met on Thursday to hear more from the administrators, although the BBC reported that some creditors had already written off their losses on the firm.