A Port Lincoln-based custom machinery company has been placed into administration after 25 years of operation.
Moose Industries, which was founded in 1997, was placed into voluntary administration on Friday, with initial investigations by administrators Oracle Insolvency Services finding hundreds of thousands of dollars owing to various creditors.
Among them were about half a dozen farmers that had paid deposits of up to $50,000 for equipment that has not been delivered.
Servicing the agricultural sector right across Australia, Moose Industries uses 3D design technology to custom manufacture machines and components to suit individual farming needs.
These include Delvers, Land Rollers, Tree Seeders, Hydraulic Coulters, Grain Doors and PTO Trailers. Moose Industries has also worked with the aquaculture industry in Port Lincoln and previously designed Tree Seeders for Landcare and Greening Australia.
The business has faced tough conditions as a manufacturer in the present economic climate.
As part of the assessments by Oracle Insolvency Services, the administrators plan to keep Moose Industries operating for several weeks in an effort to complete as many customer orders as viably possible.
Oracle Insolvency Services' founding partner Nick Cooper said the goal was to explore every opportunity for the business to "trade out of its difficulties".
"If that is not possible we have a strong focus on maximising the return to creditors," he said.
"These farmers are waiting for important pieces of machinery vital for the continuing operation of their business and we are in the process of contacting them."
Oracle Insolvency Services has determined that without a significant change in circumstances, Moose Industries will likely face liquidation.
It is now investigating opportunities for a potential sale of the business assets after receiving some initial interest.
Oracle Insolvency Services' founding partner Yulia Petrenko said while the firm was still investigating the exact circumstances of this case, it was vital that any business or individual heading for financial trouble sought help immediately.
"The earlier we can intervene, the greater the chance to turn a struggling company's fortunes around," said Ms Petrenko.
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