Titan to close Cherokee Case IH Dealership
Titan Machinery Inc. plans to close its Case IH farm machinery dealerships in Cherokee and Anthon, Iowa, as part of a broad restructuring plan.
The Northwest Iowa locations are among 15 dealerships in Iowa, Nebraska, Minnesota and South and North Dakota that will be consolidated with nearby Titan dealerships, the West Fargo, North Dakota-based company said.
Customers can continue to receive sales, parts, service rental and precision support at their nearest preferred location, the company said. The next closest Titan Case IH dealerships are in Kingsley and Le Mars, Iowa.
The four locations in Le Mars (pop. 9,820), Cherokee (pop. 5,200), Kingsley (pop. 1,400) and Anthon (pop. 567) were long part of Vern Anderson Equipment, which was sold to Titan Machinery in 2005.
Other locations affected by last week's announcement are Broken Bow and Wahoo, Nebraska; Milband and Redfield, South Dakota; Redwood Falls and Thief River Falls, Minnesota; and Arthur, Kintyre, Kulm and Mayville, North Dakota. In addition, a construction equipment store closed in Williston, North Dakota, in December of last year, and two stores will be combined with stores in the same cities later this year.
The Titan Machinery Case CE heavy equipment dealership in Sioux City will remain open.
The restructuring plan is expected to be completed by the end of July. The company said employees displaced by the restructuring plan will be offered positions in nearby locations where possible or will be offered severance benefits.
"As we built one of the largest equipment dealership networks in North America, we made a number of acquisitions, including smaller ones, in close proximity to other locations in our network," David Meyer, Titan Machinery's chairman and CEO, said in a statement.
"Although it's a difficult decision to close a Titan location, by consolidating these adjacent locations, we will be able to achieve increased scale and efficiency to support our customers in those markets."
The restructuring plan is expected to generate annual cost savings of about $25 million, while annual revenue is expected to be reduced by about $40 million, or less than 4 percent of overall company revenue.
Titan operates a network of agricultural and construction equipment dealerships in 89 North American locations, and 20 European locations. The company carries CNH Industrial Brands, which include Case IH, New Holland Agriculture, Case Construction and New Holland Construction.