Background
In early 2024, a leading European food manufacturing company, citing a desire to "increase operational focus and reduce complexity," stopped construction on a multi-million euro production facility.
The Challenge
Prior to the decision to stop construction, the client had taken delivery of all of the new processing and utility equipment, a large portion of which was still in original crates, stored in off-site facilities across Europe.
In addition to the geographic challenge of identifying and cataloging client assets across multiple locations, following the sale of the still-under-construction facility, the company faced a short deadline to clear the site or face significant penalty charges. With these challenges in mind, the client's key goals were to:
- Clear the site within the required timeframe to avoid penalties
- Maximize recovery by selling assets to global end-user buyers, not dealers
- Maintain safety while removing a significant number of industrial assets from off-site storage facilities
- Achieve approximately 60% of the original asset value
Liquidity Services distinguished itself by offering full responsibility for meeting the tight removal deadline, leveraging an extensive global buyer network, and providing flexible storage solutions. A key factor in the client's decision to partner with Liquidity Services was our commitment to executing a timely clearance with minimal disruption.
The Results
The project involved:
- Strategic Planning and Project Management: Liquidity Services' expert team managed all project logistics, safety compliance, and asset verification, often working from purchase orders and invoices due to limited visual access to crated and stored equipment.
- Multichannel Sales Strategy: Two international public auctions and one private treaty sale were conducted to optimize exposure and pricing. An extensive buyer marketing campaign ensured a substantial global reach, attracting qualified end-user buyers from 26 countries.
- Contingency for Unsold Assets: To mitigate risk, Liquidity Services arranged for off-site storage of any unsold equipment, ensuring the client's site clearance deadlines were met regardless of sale timing.
Liquidity Services delivered a logistically complex solution that met the client's key objectives of timely site clearance and global asset sales. By combining responsive planning, expert project management, and unmatched buyer reach, the client's canceled investment became recovered capital.
