When Rexam, a large international manufacturer of plastics products decided to close one of their facilities, they called CRG to facilitate the plant closure and liquidate the assets. Their primary interest was to maximize their return on the assets, so that they could re-invest in other operations.
We recognized that with over 100 remaining plants worldwide, maximizing returns came down to more than money. We advised them that some of the equipment could be used in other facilities, and recommended that they contact their production managers to see if there was any interest. Well, there was!
The Challenge: Disseminating detailed information about thousands of individual items, evaluating the needs and economic feasibility of transferring machinery and equipment, and developing a liquidation plan for the remaining assets.
The Solution: The CRG appraisal division evaluated, cataloged, and photographed each individual piece of equipment. We constructed a complete on-line color catalog, and posted it to a secured web site. We provided Rexam executives with Current Auction Value, Fair Market Value, and information regarding rigging and removal for each item.
Production managers from each Rexam factory were provided an access code and password to visit the web site, and given 60 days to submit requests for equipment that they needed. Company executives had the chance to assess the requests and make reasonable decisions by comparing recovery potential against transitioning the equipment to somewhere else within the organization.
The Result: Approximately ½ of the equipment was effectively transferred to other factories, and the remaining assets were sold at an on site auction sale attended by over 200 registered bidders, with another 100 registered on-line. Successful bidders came from 4 continents.