24 July 2001
ADAS rescues Globalfarmers
By Andrew Shirley
FARM consultant ADAS has confirmed it has agreed a rescue package for ailing agricultural internet trading company Globalfarmers.
The Edinburgh-based firm, which only went online in January, went into receivership earlier this month with reported debts of about 6m.
Neither firm would reveal the financial details of the take-over, but it is rumoured that ADAS paid in the region of 300,000.
“All I can say is the firm has been bought out of receivership,” said an ADAS spokeswoman.
The move is likely to lead to a further restructuring of Globalfarmers despite assurances from ADAS that “it will be business as usual”.
Over half of the original 40 staff were laid off in June after revenue was hit by foot-and-mouth and fewer farmers than expected chose to trade on the site.
It is now expected that a core team of about 12 staff will stay on under the new management.
However, the spokeswoman said that ADAS will continue to maintain the trading platform as a separate entity, at least in the short-term.
“We want to capitalise on Globalfarmers high level of brand recognition and its success in the marketplace.”
But she also added that the company would be looking at the possibility of integrating the infrastructure of the site with its own web-based products sometime in the future.
“At the moment we dont have an e-trading capability so the purchase of Globalfarmers has helped complete the jigsaw.
“We have a network of consultants on the ground who will be able to help farmers use the service.”
- Farming News to cease publication, FWi, 26 June 2001
- Globalfarmers slashes workforce, FWi, 27 April 2001
- Dot com targets Farmers, FWi, 19 January 2001
- New e-commerce giant plans big input savings, FWi, 16 June 2000
FREE NEWS UPDATE