150 jobs lost at Shrewsbury farm machinery firm Rea Valley Tractors as group collapses into administration

The machinery company, which has its head office in Shrewsbury, announced its intention to appoint administrators while the business was put up for sale, having run into difficulties in August.

The company sells, services and repairs agricultural machinery, materials handling equipment and workplace storage solutions, and has seven dealerships including Welshpool, Knighton and Shrewsbury.

However, efforts to sell both Rea Valley Tractors and parent firm Dunstall Holdings have failed - and administrators have today confirmed that 149 out of the company's 169 staff have been made redundant immediately, with the business set to be wound down.

The administrators say they are working closely with the Redundancy Payments Service to ensure that staff affected receive redundancy payments "as soon as possible".

In a statement, Tim Higgins, Edward Williams and Jane Steer of PwC confirmed they had been appointed as joint administrators of Dunstall Holdings Limited and Rea Valley Tractors Limited.

"As a result of difficult trading conditions over a prolonged period and inflationary cost pressure, the Companies had been pursuing opportunities to secure a long-term future through a sale of all or part of the businesses," said the statement.

"Despite a comprehensive marketing process, no viable offers were received for the Group as a whole. Consequently, the Directors have been left with no alternative but to place the Companies into administration."

Rea Valley Tractors Limited and Dunstall Holdings Limited will now be wound down over the course of the coming weeks, with around 20 employees retained across the seven sites operated by Rea Valley Tractors Limited in the Midlands, North West England and Wales to support in winding down operations. 

“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," said Tim Higgins, joint administrator. 

"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."