Tieman Industries goes into administration


KordaMentha will oversee expressions of interests for the sale of Tieman’s three businesses.

Tieman Industries goes into administration
Tieman Industries is looking to sell three subsidiaries.

 

KordaMentha Restructuring has been appointed the administrator of trailer manufacturer Tieman Industries as the 60-year-old family business seeks a buyer.

Tieman, which designs and manufacturers bulk road tankers in Campbellfield in Victoria, is presently under the full control of its administrators but will continue to trade as expressions of interest are received.

The other two arms of the company, its tail lift business and its repairs and maintenance business, are also up for sale and seeking interested parties.

KordaMentha spokesman Michael Smith says the first step of the administrative process has been completed, with the company and KordaMentha formalising a strategy for the business, and a creditors meeting has been organised for Thursday August 20 in Melbourne.

Though the company directed inquiries to administrators today, joint-managing director Dale Tieman has told the Herald-Sun his firm hoped to recapitalise around the profitable tanker division.

One of three KordaMentha Restructuring executives overseeing the changes, Rahul Goyal, says current schedules will be adhered to across all three businesses and customers will receive their products on time and to the same standards.

Tieman suffered a significant loss in 2014 as a result of market conditions, very large overheads and overstaffing, Smith says.

"The company has been on a restructure plan but was unable to execute due to lack of funds," he says.

"They need to reduce costs which included consolidating sites and reducing labour."

The high-cost subsidiary businesses yielded low margins for Tieman, he says, but may be more profitable for larger companies.

"Repairs and maintenance has more than 20,000 customers and provided service to anyone who has material handling equipment including both large supermarket chains."

The company’s approximate 250 employees are being advised of developments as the business is assessed.

In the wake of the August 20 meeting, a second meeting will be held where the administrators will hand over a report on the state of affairs.   

 

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