Rotary Cutter Bush Hog temporarily shuts down...

[jimg]

Sad news about BH but in my end of the world they pretty much priced themselves out of the market. I bought from one of several local ag equipment manufacturers who had an equivalent product for hundreds of $$$ less. The paint wasnt as nice/fancy nor was there a high degree of marketing. So, you can buy American but still not pay inflated prices for paint and a high powered marketing dept.

 

[CNH_Dealer]

Published: January 23, 2009

Earlier today, News Channel 11 received information that Bush Hog employees were sent the following letter, stating that they would be returning to work in February:
____________________________________________________________________________

To: Our Valued Bush Hog Employees

From: Duane Prentice, President

Subject: Status of Bush Hog, LLC

A memo you received from Bush Hog earlier this month may have caused some confusion. Many of you are asking reasonable questions, which is to be expected from employees who have served Bush Hog for so long and have such pride in this company.

Today I write to update all employees on where Bush Hog stands and to clarify our current status. We understand the stress these circumstances have put on you and your families and we hope to alleviate some of that anxiety.

First and most important, Bush Hog plans to return to production in early February. Like many manufacturers in these economic times, we are taking action to avoid excess field inventory. The current temporary production stoppage is one of the initiatives we have implemented to ensure that our field inventory level is brought down to an acceptable level.

Beginning Thursday, January 29, we will provide everyone with an update on February production and work schedules. If you are a Selma, AL employee you can call (334) 874-3250 for this information. If you are a Telford, TN employee you can call Stacie or Anita in the Human Resources office. Anita can be reached at (423) 788-7181 and Stacie can be reached at (423) 788-7184.

As you are aware, Bush Hogç—´ ownership is investigating whether or not this may be the right time to sell the company. Bush Hog owner CC Industries has hired Lincoln International, a global merger and acquisition advisory firm, to help evaluate options.

A number of interested parties have come forward, clearly drawn to the opportunity to own a quality company, but a sale is far from certain. Our ownership is committed to exploring its strategic options for a potential sale, but to be clear: Bush Hog has been, is, and will continue to be the market leader in rotary cutters and other agricultural implements.

With your help, we will continue supplying our customers with products as usual. Weæ±*e committed to providing the same service our customers have come to expect from us. As always, please feel free to contact me or your managers to discuss any concerns you may have. We remain dedicated to being open and honest with you and to sharing updated news as we can.

Thank you again for your ongoing patience, all the hard work you have invested in the company and for being part of this great Bush Hog family.

Respectfully Yours,


Duane Prentice

 

[HayDR]

This is a sad situation, Bush Hog was a great company and still can be in the future. Their products are high quality. If BH can sell their loader division then they may have enough capital to restructure the company so they can come back as the BH that made them an industry leader.

I just can not understand the letter BH sent to their vendor suppliers canceling all PO's. BH has told vendors they will be paid for any outstanding balances but the vendors may not have confidence to extend credit to BH in the future. IMO this action alone put BH in a forced sell situation or forced reorganization situation.

The BH name is very valuable and they will not go away. So fine dealers like West Hills Case/IH-NH will not have to worry about replacing the BH line of equipment.

 

[Farmwithjunk]

This is a sad situation, Bush Hog was a great company and still can be in the future. Their products are high quality. If BH can sell their loader division then they may have enough capital to restructure the company so they can come back as the BH that made them an industry leader.

I just can not understand the letter BH sent to their vendor suppliers canceling all PO's. BH has told vendors they will be paid for any outstanding balances but the vendors may not have confidence to extend credit to BH in the future. IMO this action alone put BH in a forced sell situation or forced reorganization situation.

The BH name is very valuable and they will not go away. So fine dealers like West Hills Case/IH-NH will not have to worry about replacing the BH line of equipment.

What I'm hearing from an insider at Bush Hog is they DIDN'T cancel "ALL PO's". I was told they cancelled PO's for material/parts scheduled for delivery mid jan through late feb., as well as some components for low end mowers (that would lead one to believe they may plan on exiting that market altogether) Vendors MAY not extend confidence, or just as likely they WILL. Most of these vendors aren't swamped with orders themselves, and most likely are going to resume shipping until such a time as they have evidence that tells them Bush Hog is an unreliable customer. Long story short, the vendors need the business too.

Bush Hog IS in a bad situation. They do need to re-evaluate their current product line, as well as certain business practices. This however does NOT sound their death knell. IMHO, they should have stayed out of the "economy" line of mowers, ect.

I would expect them to sell the brand at some point. Again, that doesn't spell the end of the Bush Hog product line. Simply a different owner at some point in time.

At this point, we have opinions based on rumors, unsubstanciated facts, along with bits and pieces of confusing information.

 

[HCF 966]

King Kutter and Land Pride both make tillers in the US. That is a fact. Many Bush Hog employees (Sales reps, sales managers etc) told me they do not make their tillers so that is what I'm going off of. But I can in fact guarantee that there are other short lines make their own tillers.

Well I work for Bush Hog and they make the RTS series of tillers I don't know which rep you have talked to but, he is misinformed.

 

[Bird]

Well I work for Bush Hog and they make the RTS series of tillers I don't know which rep you have talked to but, he is misinformed.

And very fine tillers they are, too (or at least were and I assume still are). I had an RTS40 and a cousin still has an RTS62.

 

[keyser soze]

What I'm hearing from an insider at Bush Hog is they DIDN'T cancel "ALL PO's". I was told they cancelled PO's for material/parts scheduled for delivery mid jan through late feb., as well as some components for low end mowers (that would lead one to believe they may plan on exiting that market altogether) Vendors MAY not extend confidence, or just as likely they WILL. Most of these vendors aren't swamped with orders themselves, and most likely are going to resume shipping until such a time as they have evidence that tells them Bush Hog is an unreliable customer. Long story short, the vendors need the business too.

Bush Hog IS in a bad situation. They do need to re-evaluate their current product line, as well as certain business practices. This however does NOT sound their death knell. IMHO, they should have stayed out of the "economy" line of mowers, ect.

I would expect them to sell the brand at some point. Again, that doesn't spell the end of the Bush Hog product line. Simply a different owner at some point in time.

At this point, we have opinions based on rumors, unsubstanciated facts, along with bits and pieces of confusing information.

The letter read... All PO's.

It said until we (Bush Hog LLC) notify you further don't ship anything to us, or purchase anything on our behalf.

It was addressed "To All Suppliers"

 

[keyser soze]

Well I work for Bush Hog and they make the RTS series of tillers I don't know which rep you have talked to but, he is misinformed.

How many RTS's does Bush Hog sell per year?

 

[SESS]

Well I work for Bush Hog and they make the RTS series of tillers I don't know which rep you have talked to but, he is misinformed.

You guys back to work yet? I sure hope so and wish you all the best of luck!

 

[Farmwithjunk]

The letter read... All PO's.

It said until we (Bush Hog LLC) notify you further don't ship anything to us, or purchase anything on our behalf.

It was addressed "To All Suppliers"

Have you actually SEEN the letter? Is a copy available to view? Are you paraphrasing, or is that an actual quote from the letter?

I heard an ever so slightly different version, told as gospel by someone inside Bush Hog.

I'll be visiting with a couple BH reps I know very well, week after next. (Natl. Farm Mach. Show is in town) I'll get as much info from them as possible and pass it forward.