Agricultural supply store Phoenix Roller Mills blames game farms and lifestyle getaways for its demise.
Agricultural supply store Phoenix Roller Mills blames game farms and lifestyle getaways for its demise.
The iconic Grahamstown business has finally closed its doors after the granting of a liquidation order last week.
In court documents owner Brian Bonsor cited a dramatic reduction in turnover and profitability dating back about six financial years, among other determining factors.
Named after the mill in Dundas Street which ran for 77 years after being installed in 1907, the company distributed feed and agricultural products.
After the company's registration as Phoenix Roller Mills in 1994, it grew to employ 15 people, according to the court documents.
In his affidavit to the Grahamstown High Court, Bonsor said the business had traded profitably until approximately 10 years ago when a series of events impacted adversely on it.
The first, he said, was the increased sale of agricultural farms to third parties who were not farmers and most of which were converted to game farms or lifestyle getaways.
This resulted in drastic cuts in buying orders.
The worldwide recession had also played a major role in the business's demise.
Also cited in the application for liquidation was that the company's trial balance indicated it was insolvent by around R2 566 593.
The bank had put a great deal of pressure on the business to bring down its overdraft allowance and the Bonsors had been forced to sell their family home and a vehicle.
Phoenix Roller Mills went under the hammer at a public auction in 2010. It did not reach its reserve price and was not sold.
The prime property was put on the block by Dave Mullins in association with Remax Frontier properties. Despite the good turnout on the day, few participated in the bidding.
The reserved price for the commercial land, which measures approximately 2740 m2 was R4.5 million, but the top bid was only R2.5 million.
In addition to the property, the mill was also auctioned. Bidding started off at R40 000, but Wilfred Mole from Sandstone Estates in the eastern Free State bought the historical machinery for R 55 000.
