The Daily Southerner, Tarboro, NC

Local News

April 4, 2008

Farmtrac battling dealers in cyberspace

Bob Bendetti

For 902 Farmtrac tractors, it appears to be a case of "abracadabra, disappear ... abracadabra, reappear."

At approximately 10:40 a.m. Eastern Time on Tuesday, that's what happened to a LewPack International Web site offering three Tarboro properties full of Farmtrac agricultural hardware – it vanished into cyberspace.

A bevy of custom built two-wheelers from Fort Worth, Texas-based IronHorse Motorcycles also disappeared from the LewPack site.

Farmtrac and IronHorse Motorcycles were financially troubled firms and both were bankrolled by Textron Financial of Alpharetta, Ga. Textron is the primary secured creditor to Farmtrac.

Both were present for one moment and gone the next.

The online clearance Web site comes three months after financially embattled Farmtrac North America (FNA) closed its doors to employees to reorganize. It is also more than 180 days behind on its debt of more than $14 million to Textron.

Attorney Jim Marrow of Tarboro assumed duty Feb. 27 as the Edgecombe County court-appointed receiver to ensure payment of debt to creditors. In essence, Marrow acts as the owner of Farmtrac. Part of his job is to repair the company's reputation and prevent it from perishing.

When asked about the offering through LewPack International, Marrow claimed having no prior knowledge but learned of it through faxes and e-mails from Farmtrac retailers across the country.

In further conversation Tuesday, the receiver attributed LewPack's online setup attempt to a "miscommunication" between two undisclosed parties that was resolved through a phone conversation.

"They were contacted and the Web page is no longer in service," Marrow said.

LewPack's Farmtrac sales page, lewpackinternational.com/tractors.html, was in full operation until shortly after The Daily Southerner had gone to press Wednesday.

LewPack International partner Bobby Pack, of Cummings, Ga., stated that he and Richard Lewis established the Web site "less than one month ago" for the express intent of "disposing of that property." The company was registered with the Georgia Secretary of State on Mar. 25.

On Thursday, a Web site for Country Boys Auction & Realty of Washington, N.C., listed an Apr. 25 auction of Farmtrac tractors and related hardware it claims is "primarily to dispose of a large amount of surplus ... approximately 25-30 tractors" that are for test, yard, experimental and prototype purposes."

According to the Country Boys Auction & Realty Web site, it is family-owned and operated by Mike and Doug Gurkins.

Doug Gurkins, hired by Marrow in late February to spearhead the project of sorting through years of bookkeeping and hardware inventory issues, leads a barebones administrative staff of 12 at the Farmtrac headquarters building on 111 Fairview Street to wade though a sea of backdated paperwork and "get a good picture of what's here."

More than a dozen photos on the Country Boys Auction site give a picture of numerous tractors, front end loaders, tractor motors, tires and a stream of miscellaneous parts are up for auction.

For dealers across the nation who are scraping for parts and often give them - and installation labor – away in an effort to satisfy customers inconvenienced by the Farmtrac headquarters January closing, the auction smacks especially hard.

"We sure could use those parts," a Farmtrac retailer based in the southeast U.S. said. "When we (dealers) do so much to keep our customers faith and then see something like this ... It just doesn't seem right."

There are nearly 300 Farmtrac dealerships across the U.S. and Canada, plus three different properties (production and storage) in Tarboro.

Marrow has contended that he'd do everything possible to restore the six-decade tractor firm to old form and said that rapidly selling the tractors at "fire sale prices" is "an unenviable and last option."

E-mails and phone calls from retailers have questioned the hiring of Gurkins, a veteran liquidator and personal property appraiser – and auction service co-owner – to assist Marrow in resuscitating Farmtrac.

One dealer said, "what a coincidence" while another cited the move as a "conflict of interest."

In past conversations, Marrow said he saw the acquisition of Gurkins as part of a plan to attract a buyer. "He (Gurkins) is a high energy guy ... who is experienced at property and real estate evaluation ... and knows how to maximize value."

There are approximately 700 partly-assembled and 250 completed tractors on Farmtrac locations in Tarboro.

For numerous reasons, the lack of a tractor warranty program is a large – and essential – obstacle that must be conquered if the firm has any chance to be successful.

"It could be the difference between failure and success" of retaining dealers and customers, Marrow said.

Negotiations are under way and Marrow as "two or three" potential third-party tractor warranty and maintenance companies, one which could be approved "within seven to 10 days."

Marrow also stressed that quick actions are also critical.

"I'm aware many people are hurt in this ... and that we've got to act quickly. We will lose a lot of brand value if we let it linger," Marrow said “and the selling season is ending rapidly”

On Jan. 18, the Fairview Street location was closed and approximately 180 workers were sent home while company leadership regrouped. The workers are still in limbo and under temporary layoff.

The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.

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