The Daily Southerner, Tarboro, NC

Local News

March 24, 2008

Farmtrac puts admin staff back to work

Tarboro company owes more than $14 million

BOB BENEDETTI

An ailing Tarboro-based farm implement company opened its doors last week for business – just enough for a few workers to get a foot inside.

Farmtrac North America has a barebones management and administrative staff back on duty at its headquarters building on 111 Fairview St., according to Jim Marrow, the Tarboro attorney who assumed court-ordered duty as Receiver of Farmtrac on Feb. 27.

On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped.

Farmtrac owes more than $14 million in loans and legal fees to secured creditor Textron Financial Corp. of Atlanta and unsecured creditor LS Cable Company Ltd., of Seoul, South Korea.

Marrow has appointed one manager and about 12-13 administrative helpers on the payroll.

Led by Doug Gurkins of Washington, N.C., a property and land evaluator, the group's job is to handle a backlog of parts and limited warranty issues that have been paralyzing the more than 300 Farmtrac dealers nationwide unable to support customers and unable to sell enough goods to keep doors open.

"We needed to create billing and processing mechanisms" to serve dealerships, Marrow said.

Although Farmtrac employees voluntarily gave five to six hours daily during the plant closing in an effort to continue basic parts and phone support, numbers and support fizzled.

Marrow called the effort of up to 20 workers each day "a real show of loyalty" – albeit a disheveled one – likening it to "a Boy Scout troop with nobody in charge" after company management disappeared and "created a void" in leadership.

For dealers across the country, that eight-week gap has eroded confidence so badly, it is questionable if dealers would be willing to do anything beyond offloading Farmtrac goods.

Marrow believes that securing a comprehensive maintenance program with a third-party could be the lynchpin to retain present Farmtrac dealers. Discussions with undisclosed service vendors are underway, but no agreement has been reached.

According to Vice-Chairman and Co-owner Ted Wade of Montana Tractors, who shares Middle Eastern-based Escorts, Ltd. as a parent company, the Springdale, Ark., tractor firm has an interest in "helping" financially ailing Farmtrac by "representing its warranty, parts and service" segments.

During a recent phone conversation with Wade, the Montana Tractor leader did not confirm nor deny direct discussions with Farmtrac executives. Both groups had representatives in New Delhi, India during early March.

Marrow also stressed that quick actions are also critical.

"We will lose a lot of brand value if we let it linger," Marrow said "and the selling season is ending rapidly."

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