SPECIAL REPORT continued
Less than a month later, on 22 November, Hewden collapsed into administration, with the appointed administrator stating, “Management has been attempting to operationally reshape the business to focus on higher margin and quicker returning assets and services. However, this has proven challenging with the group’s capital structure and the recent trading environment. Management recently undertook a number of initiatives including approaching new funders and potential acquirers to recapitalise the business, but unfortunately these efforts proved unsuccessful.”
On the same day, in a pre-pack deal, A-Plant acquired the Hewden brand name along with its 800 machine powered access fleet and its lifting gear assets, including Interlift, from the administrators. Worth £29m in cash, A-Plant’s deal also includes five ‘on-site’ depots, which service major petro-chemical customers. The great news is that A-Plant is re-branding this activity as ‘Hewden Industrial’, so the famous name will live on. This deal also elevates A-Plant to the fourth largest aerial access fleet in the UK.
During December, four other hirers bought eight Hewden plant depots. The largest single purchaser is Morris Leslie, which has acquired four outlets in Bedford, Willenhall in Birmingham, Whitehaven and Inverness. The purchase also includes over 1,000 machines and 15 vehicles. GAP Group purchased the outlet in Lewes, near Brighton, taking its depot network in London and south east England to 29, and to 130 throughout the UK. In addition, Cheshire-based independent hirer, Ashbrook Plant, acquired Hewden’s former Warrington and Bangor depots, and Nixon Hire confirmed its acquisition of Hewden’s Nottingham premises and related plant. It is reported that these deals raised another £29m.
Fire sale of cranes and construction plant
As the New Year kicked off, the administrators were forced to announce the fire sale of Hewden’s extensive crane fleet and thousands of other items of construction plant. As the UK’s No. 2 crane hirer, with, we understand, around 140 machines at a Gross Book Value (GBV) of over £50m, the auction of Hewden’s fleet should attract worldwide interest, especially with a low sterling exchange rate. The crane disposal started in the middle of this month, and the general plant fleet, with a GBV of, probably, over £100m, not to mention its 900 unit telescopic handler fleet, will form the second phases of the disposal. The auctioneers highlight the large consignment of 2015 and 2016 machines, many of which are still in warranty. They expect to complete the disposals by the end of April.
All in all, the Hewden story of the last 20 years is a sorry tale of a fall from grace. As our own contributors - not to mention Sir Matthew Goodwin’s critique - have demonstrated, the demise of Hewden was like an accident unfolding in slow motion. Successive senior management teams must accept responsibility for their poor decision-making throughout the period. Hundreds of Hewden staff are now out of work and we’re unsure whether suppliers have been paid following last year’s buying spree. The collapse of Hewden is a salutary lesson in mismanagement that our hire industry must heed. It must not happen again.
•
Five hirers have now acquired 13 former Hewden depots, their local plant fleets, and, in A-Plant’s case, its powered access and lifting gear fleet.
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