Bowditch & Partners Earthmoving has fallen into receivership, a victim of a slowdown in the coal mining sector.
Bowditch operates a mining equipment, machine hire and earthmoving service from the heartland of the New South Wales coal mining industry in Muswellbrook.
Morgan Kelly of Ferrier Hodgson has been appointed as a receiver to the company and said he is working to stabilise cashflow in the business as he looks to sell the business as a going concern.
Bowditch was advertised in the newspapers this week highlighting the opportunity to buy a “diverse fleet” of earthmoving and mining equipment; a purpose-built and dedicated facility and workshop; current ongoing contracts with a blue-chip customer base; and access to a qualified and experienced workforce.
Kelly said in a statement that the business’ demise was the result of the “cyclical” coal sector.
“Events such as this receivership are a natural part of the cycle. We anticipate there will be a demand for these assets and the business,” Kelly said.
“We have stabilised the cashflow and continue to work closely with customers and employees.”
Kelly said Bowditch had seen a curtailing of operations as mining companies have wound back some activity in the coal sector.
“The Bowditch & Partners business had significant leasing commitments, leaving it exposed to a reduction in demand,” Kelly said.